Herring and meatballs are ultimate Swedish clichés as is the country's socialism. The latter however is changing with lessons for countries like the United Kingdom and Canada.

Guaranteed public sector pensions paid for the bulk of the population with their tax dollars who do not have pensions at a time when life expectancies are rising is not sustainable.

Articles then on Sweden's shift to the right, the coming battle between the government and unions in the United Kingdom as well as democracy, the economics of the tax cut debate in the United States, how France caused the Great Depression (really!), Nigeria's long march to a successful country, concerns about Turkey, and illegal cigarettes in Canada.

The Economist notes that Sweden is quietly rethinking its social democracy not with noisy demands to reduce personal taxation but with demands for more competent government and less welfare. Competence and moderation.

OUTSIDE Scandinavia, Sweden is generally known for two things: social democracy, and the books of Stieg Larsson. http://www.economist.com/node/17039151

 

Over breakfast yesterday with a dear articulate friend recently returned from two years in the north of England I was struck by his analysis that the United Kingdom's public sector is about to get some very rude treatment.

He said succinctly, "[T]hey (public sector) have been completely isolated from the economic trauma because their jobs are protected and they have pensions. This will not last."

When Canadians realise that the present value (the cost to provide) their post-people's pensions is roughly $4 million per person not only are they unlikely to tip during the Xmas season they will support politicians that will revisit the generous benefits the public sector has negotiated.

Seeing the trade unions rise up like the undead has been a salutary experience.   http://www.telegraph.co.uk/comment/columnists/janetdaley/8010988/The-nightmare-of-union-power-is-back-again.html

 

How government cuts will destroy lives. What about the ones they will save?

As hot-button political issues go, welfare reform isn't a whole lot of naughty fun. It's not as exciting as Lady Gaga's meat purse, or William Hague's room-sharing arrangements, or what particular piece of priggery the pope has stuck up his cassock today.   http://www.newstatesman.com/blogs/the-staggers/2010/09/welfare-state-work-mental

Critics of the Tea Party are pinning a lot of their hopes on Americans 'wanting details'. Hmmm that is expecting a lot isn't?

The Tea Party’s startling win in the Delaware Republican primary is a cruel blow to Grand Old Party hopes of gaining control in the US Senate. Christine O’Donnell was the Tea Party’s choice and had the backing of Sarah Palin, darling of the conservative insurgents.   http://www.ft.com/cms/s/0/b6f18774-c41f-11df-b827-00144feab49a.html?ftcamp=rss&ftcamp=crm/email/2010920/nbe/Comment/product

 

Whatever you think about the Tea Party movement there is a tremendous sense of democracy in it.

As in, you govern by my consent.

One mystery of the first decade of the 21st century is the decline of democracy.  http://www.nytimes.com/2010/09/21/opinion/21iht-edcohen.html?_r=1&ref=global

Related.

“For really I think that the poorest he that is in England hath a life to live as the greatest he: and therefore truly, sir, I think it’s clear, that every man that is to live under a government ought first by his own consent to put himself under that government.”  -- Colonel Thomas Rainsborough

The cold hard facts of the Bush tax cuts.

The Bush tax cuts of 2001 and 2003 are set to expire.  http://www.nytimes.com/interactive/2010/09/19/weekinreview/19marsh.html

A fascinating article on how France's hoarding of international gold reserves in 1926-1932 created the deflationary shock that caused the Great Depression.

A large body of research has linked the gold standard to the severity of the Great Depression. This column argues that while economic historians have focused on the role of tightened US monetary policy, not enough attention has been given to the role of France, whose share of world gold reserves soared from 7% in 1926 to 27% in 1932. It suggests that France’s policies directly account for about half of the 30% deflation experienced in 1930 and 1931.   http://www.voxeu.org/index.php?q=node/5536

 

Related.

China needs to reform not a stronger currency.

While everyone in Washington thinks the renminbi should be revalued, not everyone in China agrees.   http://www.ft.com/cms/s/0/d78229b2-c41f-11df-b827-00144feab49a.html?ftcamp=rss&ftcamp=crm/email/2010920/nbe/Comment/product

Interesting book review about Nigeria.

What's wrong with Nigeria?  http://online.wsj.com/article/SB10001424052748703376504575492382253507788.html?mod=rss_opinion_main

A warning about the changes in Turkey.

“Turkish democracy is at a turning point,” Prime Minister Recep Tayyip Erdoğan announced after winning a crucial vote in a referendum to change Turkey’s constitution. “We are sitting an important exam.”  http://www.project-syndicate.org/commentary/rodrik48/English

John Ibbiston thinks that the three leaders of Canada's largest national political parties each have one more go at telling their story.

Stephen Harper and Michael Ignatieff have competing stories they want to tell. And they will use Monday’s return of Parliament – probably the last full sitting before a federal election – to tell them. Whoever weaves the better tale will govern Canada in the coming years.  http://www.theglobeandmail.com/news/politics/john-ibbitson/he-who-tells-the-best-story-this-fall-will-govern-canada/article1714062/

The National Post begins a five-part series on illegal cigarettes in Canada.

They’re surrounded by high fences, security guards and a general air of secrecy; rarely is there any identifying sign.  http://news.nationalpost.com/2010/09/18/post-preview-inside-canadas-underground-tobacco-industry-a-five-part-series/