In 2008 Sweden’s gross national debt was the equivalent of 37 per cent of GDP while Australia’s was effectively zero.
That was before the banking crisis of when the Rudd administration spent big on the pretext of warding off a recession.
Sweden, on the other hand, remained fiscally disciplined and emerged better than most European countries from the crisis without adding to its debt.
Fast forward to 2020, when Sweden was once again an outlier, rejecting the need for Covid lockdowns and spending just 4 per cent of GDP on pandemic management. Australia spend around 17 per cent of GDP, following the economic lockdown strategy pursued in almost every other western economy.
The chart tells the story. Sweden has managed to reduce public debt in the last four years while Australia’s has increased.
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