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Assignment:
Our assigned readings for contrast other forms of capitalism with the more centralized approach found in Sweden. Based on early evidence, the new US presidential administration and the new leadership of the US Senate may shift the US economy toward the Swedish model.
In particular, many people expect the US federal government to adopt higher taxes, higher welfare and transfer payments, and more regulation.
If we leave politics aside and focus on the economics of this potential change, what is the expected impact of this shift on the growth potential of the US economy? What is the anticipated effect on income and wealth distribution? How would this change affect the international competitiveness of the US economy?
Two Pages
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