This Nordic state remains a paragon of income equity, although even it has not escaped the worldwide widening of the rich-poor gulf. Sweden鈥檚 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 .
And yet Sweden鈥檚 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 and in part from the 2009 financial crisis.
