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Megan McArdle

Megan McArdle - Megan McArdle is a senior editor for The Atlantic who writes about business and economics. She has worked at three start-ups, a consulting firm, an investment bank, a disaster recovery firm at Ground Zero, and The Economist. More

Megan was born and raised on the Upper West Side of Manhattan, and yes, she does enjoy her lattes, as well as the occasional extra-dry skim-milk cappuccino. Her checkered work history includes three start-ups, four years as a technology project manager for a boutique consulting firm, a summer as an associate at an investment bank, and a year spent as sort of an executive copy girl for one of the disaster-recovery firms at Ground Zero … all before the age of 30.

While working at Ground Zero, Megan started Live From the WTC, a blog focused on economics, business, and cooking. She may or may not have been the first major economics blogger, depending on whether we are allowed to throw outlying variables such as Brad Delong out of the set. From there it was but a few steps down the slippery slope to freelance journalism. She has worked in various capacities for The Economist, where she wrote about economics and oversaw the founding of Free Exchange, the magazine's economics blog. She has also maintained her own blog, Asymmetrical Information, which moved to The Atlantic, along with its owner, in August 2007.

Megan holds a bachelor's degree in English literature from the University of Pennsylvania and an M.B.A. from the University of Chicago. After a lifetime as a New Yorker, she now resides in northwest Washington, D.C., where she is still trying to figure out what one does with an apartment larger than 400 square feet.

Sweden: paradise or purgatory?

By Megan McArdle
Jun 5 2008, 3:04 PM ET Comment

I know, I should link more. I tend to forget that my readers don't know everything I know--that they haven't written a couple dozen stories about European disability and pension systems, growth rates, unemployment, immigration, and so forth. That's the hazard of blogging--print journalists have editors there to remind them what other people don't know.

So sorry that I didn't provide links on my Sweden post about disability, unemployment, and so forth. I just sort of assumed that Sweden's amazing rates of disability, "true" unemployment rate that may top 20%, and so forth were common knowledge. They certainly aren't particularly controversial. But if there is anything less common than common sense, it's probably "common knowledge".

That, presumably, is how this got written. It's a compendium of extremely weak Google-fu that betrays a pretty fundamental lack of knowledge about Sweden's economic problems.

Let me be clear: Sweden is not by any means a dystopian hell on earth full of morose workers standing in endless queues for Yugoslavian shoes. It's a lovely place to live, full of people who are about as happy as genetics and the weather permit them to be. However, Sweden is wrestling with a lot of big issues. I was going to write a post about them to correct some of Ms. G's more bizarre misperceptions, but I was beaten to the punch by the inimitable Michael Moynihan, who has lived in Sweden, is married to a (lovely) Swede, and has spent far more time on the subject than I have, explain. Luckily for you, he's done a far better job than I would have. I won't excerpt, because it should be read in its entirety.

One other point I should make, though: the subject of cultural homogeneity and welfare states is complicated, delicate, and by no means settled. But there are a few things we think we do know. First, the more ethnically diverse a population is, the lower the political support for lavish safety nets (the subject of Robert Putnam's recent anguished paper). We also know to a pretty high degree of certainty that social solidarity plays a big role in keeping down free riding--most people don't refrain from shoplifting because they're afraid of a minor court case, but because Mom would cry and the neighbors would snicker. When you have multiple, somewhat mutually suspicious communities, you have to rely on other, harsher measures, like fraud police--or see public support erode even further. Most people don't mind paying taxes for people they think can't work. But very few want to support people who won't work. Cultural norms about what constitutes "can't", "won't", and "shouldn't have to" matter a great deal.

And even with a small country with a single culture that defines these categories pretty much the same, if those norms change, as seems (from both anecdotal and empirical evidence) to be happening in Sweden, it may be that the change will make welfare programs either fiscally or politically untenable. I don't know that this is true, and indeed don't know of any way to prove it. But I think it's worth exploring.

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