http://online.wsj.com/...
I originally posted this as a comment in an open thread but I think (and a commenter noted) that it merits more attention. Germany has captured the headlines for having a strong economy, but the development in Sweden is in fact even more impressive. This is a perfect real-world empirical example of why liberalism (or European socialism) works if implemented in an intelligent way and under the right conditions. Hopefully Newsweek and Time and other magazines will pick up this success story, I don't count on Faux News to do it. As I wrote in my post:
Highest taxes in the world, highest social spending in the world, 80% of the people are members of unions, free health care and education (including university studies), among the strongest environmental regulations in the world - and the fastest growing, least indepted (for year 2010 Sweden had a budget surplus) most successful economy in the West.
Sweden's debt is 38,8% of GDP and is shrinking fast. The budget projection is a rather big surplus for 2011.
Of course, the wingers will say that Sweden has a center-right government which has implemented anti-socialist policies - well, as a person living in Sweden, let me note that "center-right" in Sweden is "center-left" in US political terms. Also, the prosperity of Sweden and the healthy economy is a result of the previous Socialist government, and the Swedish system (generous welfare policies, intelligent economic policies, free trade) in general, even the current center-right government acknowledges that.
Personally, I think that the US must raise taxes - especially on the rich and on corporations - and to cut down on military spending, in order to shrink the deficit and pay back the depts. There is nowhere else to go. Fiscal responsibility does not belong to the left or to the right IMO - what differs is how you want to balance the budget, in an intelligent and fair way, or on the backs of the poor and the middle class.