How Sweden fights inequality — without soaking the rich

The reason Northern European countries with more regressive taxes achieve such high levels of labor market equality, despite less progressive tax systems, is that they spend money on increasing the skills and earning power of low-end wage earners. Countries with the lowest levels of inequality have learned that policies to cultivate skills for all workers and to achieve full employment policies can accelerate economic growth while also reducing inequality. Large investments in human capital reduce societal conflicts over the distribution of resources, even while expanding the economic pie.