This Nordic state remains a paragon of income equity, although even it has not escaped the worldwide widening of the rich-poor gulf. Sweden’s generous social programs continue to ensure that even the poorest can access healthcare, housing, and a minimum standard of living. Public sector spending is funded by a very progressive tax system (income taxes of up to 57 percent on top earners and a 25-percent value-added tax on most goods). Public spending accounts for more than half of GDP, in contrast to the US, where the number is around 35 percent.
And yet Sweden’s Gini index is now 27, around 25 percent higher than a generation ago, though it's still far below the OECD average of 32. The rise stemmed in part from market reforms that curbed some social services and in part from the 2009 financial crisis.
