Once hailed as a beacon of equality, Sweden is now being called a 'paradise for the super-rich.' But how did this shift happen, and what role did ordinary citizens play in it? For decades, Sweden was synonymous with egalitarianism, but over the past two decades, its landscape has dramatically changed. Today, it boasts one of the highest concentrations of billionaires globally and is home to numerous high-value startups like Klarna and Spotify. But here's where it gets controversial: many argue that the abolition of the wealth tax 20 years ago marked a turning point, alongside the introduction of tax deductions for housework and home improvements. This shift has left Sweden increasingly divided, with a growing gap between the haves and have-nots.
As part of my anthropological research into how tax systems shape social relationships, I’ve been working with pensioners in Stockholm’s southern suburbs. These individuals, who helped build Sweden’s welfare state, now reflect on its erosion with a mix of regret and introspection. And this is the part most people miss: they don’t just blame policymakers—they also question their own complacency. 'We got lazy and complacent,' admits Jan, 72. 'We thought the welfare state was secure, and we didn’t fight hard enough to protect it.'
Kjerstin, 74, recalls a time when Sweden’s welfare state, known as folkhemmet ('the people’s home'), promised comfort and security for all. 'I grew up believing I’d always be taken care of,' she says. 'But now, people are more focused on getting rich than building something together.' Sweden’s Gini coefficient, a measure of inequality, has risen from 0.2 in the 1980s to 0.3 today, mirroring a global trend but hitting harder in a country once defined by its collective spirit.
Here’s the controversial part: while the wealth tax was criticized for being regressive and driving tax avoidance, its abolition in 2006 by a right-wing government—following the elimination of inheritance tax by the previous social democratic government—is now seen by many as a pivotal moment. 'We didn’t realize we were becoming a country of rich people,' Bengt, 70, reflects. 'We didn’t protest, and now we’re seeing the consequences.'
The Swedish welfare state wasn’t a Robin Hood project but a communal effort, built by equals. Yet, this very notion may have blinded many to the growing wealth disparities. Today, only a handful of European countries still levy a full wealth tax, while others tax selected assets. But the question remains: is the absence of a wealth tax merely a fiscal issue, or does it reflect a deeper shift in societal values?
Kjerstin’s words linger: 'You should pay attention to the fact that you live in a society that is more humane, where everyone knows from second grade they’ll be taken care of.' So, here’s a thought-provoking question for you: Is Sweden’s shift toward a 'paradise for the rich' an inevitable outcome of globalization, or a result of collective complacency? And more importantly, what kind of society do we want to build—one of individual gain or communal care? Let’s discuss in the comments.
