[Book Sip] Welfare State Sweden? 'Unhappy People in the Happy Country'

Some sentences encapsulate the entire content of the book itself, while others instantly reach the reader's heart, creating a connection with the book. We excerpt and introduce such meaningful sentences from the book. - Editor's note

Sweden is often cited as a model welfare state. However, the author points out serious problems within it. For example, the high-cost and low-efficiency issue where hospital waiting times reach 5 to 10 hours even in emergencies, old-age pensions leaving only 170,000 won available after essential living expenses, and declining academic achievement. The author argues that Sweden's welfare policy is only possible as long as it does not lose the driving force of growth, suggesting that universal welfare that hinders economic growth should be reduced, while selective support for vulnerable groups should be expanded and market freedom maximized.

The greatest benefit under Sweden's healthcare system comes when one suffers a serious illness requiring treatment and surgery. Surgery costs do not exceed a personal burden of 150,000 won (1,150 kronor), and hospitalization costs are only 13,000 won (100 kronor) per day. However, the problem arises after surgery. Due to a shortage of hospital beds, unless the illness is quite severe, hospital stays are limited to within 1 to 2 days. An acquaintance of mine was discharged just one day after a hysterectomy, still not fully recovered, and another acquaintance had to travel five hours by car to a distant hospital because no beds were available nearby. Sweden has 2.1 hospital beds per 1,000 people, far below South Korea's 12.4 and also significantly lower than the OECD average of 4.7.

The reason Swedish workers also subscribe to separate employment insurance is because Sweden's labor market is flexible. If one thinks that it is difficult to dismiss workers in Sweden, known for its near-socialist system, that is a misconception. According to the employment protection index published by the OECD, Sweden's index for regular workers is 2.45, slightly higher than the OECD average of 2.06. A higher index means stronger worker protection. This is much higher than the U.S. (0.09), lower than the Netherlands (3.61), and similar to South Korea (2.42). On the other hand, Sweden's employment protection index for non-regular workers is 0.81, significantly below the OECD average of 1.74 and South Korea's 2.13.

It may seem contradictory that asset disparities exist in a country like Sweden, where the welfare system is solidly designed. However, as various data prove, excessive welfare actually exacerbates asset inequality. In fact, the bottom 30% of Sweden's population has negative net assets, and the next 20% holds assets roughly equivalent to the average Swedish household's monthly income. This may be because the middle and lower classes in the welfare state receive insufficient benefits and have to incur debt, or because the social safety net makes them feel no need to accumulate assets, leading them to forgo savings. Regardless of the reason, multiple sources clearly show that the asset gap between the wealthy, who can pass on assets to the next generation without inheritance tax, and the middle and lower classes who do not or cannot save, is becoming entrenched.

Unhappy People in a Happy Country | Written by Park Ji-woo | Chusubat | 17,000 won

This content was produced with the assistance of AI translation services.