[8] Swedish social democracy rose due to the extension of suffrage to the working class and the organizing of trade unions and other civic associations.
[10] Early on, in large part due to the leadership of Hjalmar Branting, the Swedish socialists adopted a flexible and pragmatic understanding of Marxism.
[16] Since the party held power of office for a majority of terms after its founding in 1889 through 2003, the ideology and policies of the SAP have had strong influence on Swedish politics.
[17] The Swedish social democratic ideology is partially an outgrowth of the strong and well-organized 1880s and 1890s working class emancipation, temperance and religious folkrörelser (folk movements), by which peasant and workers' organizations penetrated state structures early on and paved the way for electoral politics.
[23] In 1889, Hjalmar Branting, leader of the SAP from its founding to his death in 1925, asserted: "I believe that one benefits the workers so much more by forcing through reforms which alleviate and strengthen their position, than by saying that only a revolution can help them".
[24] Some observers have argued that this liberal aspect has hardened into increasingly neoliberal ideology and policies, gradually maximizing the latitude of powerful market actors.
[25] Certainly, neoclassical economists have been firmly nudging the Social Democratic Party into capitulating to most of capital's traditional preferences and prerogatives which they term "modern industrial relations".
[27] The Social Democrats became one of the most successful political parties in the world, with some structural advantages in addition to their auspicious birth within vibrant folkrörelser.
[28] In addition to being small, Sweden was a semi-peripheral country at the beginning of the 20th century, considered unimportant to competing global political factions, so it was permitted more independence while soon the existence of communist and capitalist superpowers allowed social democracy to flourish in the geo-political interstices.
[31] On that basis, they could form coalitions, innovate and govern where other European social democratic parties became crippled and crumbled under right-wing regimes.
Even more creatively, the Social Democrats commandeered selected, transcendental images from such nationalists as Rudolf Kjellen in 1912, very effectively undercutting fascism's appeal in Sweden.
[39]The Social Democratic Party is generally recognized as the main architect of the progressive taxation, fair trade, low-unemployment, active labor market policies (ALMP)-based Swedish welfare state that was developed in the years after World War II.
The social democratic labor market policies, or ALMPs, were developed in the 1940s and 1950s by LO (Landsorganisationen i Sverige, the blue-collar union federation) economists Gösta Rehn and Rudolf Meidner.
The early Swedish red–green coalition encouraged Nordic-networked socialists in the state of Minnesota to dedicate efforts to building a similarly potent labor-farmer alliance that put the socialists in the governorship, running statewide model innovative anti-racism programs in the early years of the 20th century and enabled federal forest managers in the state of Minnesota to practice a precocious ecological-socialism before U.S. Democratic Party reformers appropriated the Minnesota Farmer-Labor Party infrastructure to the liberal Democratic Party in 1944.
[45] In 2003, top-ranking Social Democratic Party politician Anna Lindh—who criticized the American-led invasion of Iraq as well as both Israeli and Palestinian atrocities and who was the lead figure in promoting the European Union in Sweden—was publicly assassinated in Stockholm.
[46] Capitalists immediately distinguished this proposal as socialism, and launched an unprecedented opposition—including calling off the class compromise established in the 1938 Saltsjöbaden Agreement.
Shipbuilding was discontinued, wood pulp was integrated into modernized paper production, the steel industry was concentrated and specialized and mechanical engineering was digitalized.
[50] With the capitalist confederation's defection from the 1938 Saltsjöbaden Agreement and Swedish capital investing in other European countries rather than Sweden as well as the global rise of neoliberal political-economic hegemony, the Social Democratic Party backed away from the progressive Meidner reform.
In the 1980s the Social Democratic party's neoliberal measures—such as depressing and deregulating the currency to prop up Swedish exports during the economic restructuring and transition, dropping of corporate taxation and taxation on high income-earners and switching from anti-unemployment policies to anti-inflationary policies—were exacerbated by the international recession, unchecked currency speculation and by a Moderate Party government led by Carl Bildt (1991–1994), creating the fiscal crisis of the early 1990s.
[55] For example, in the late 1980s high inflation interacted with the tax code to produce negative real interest rates and an investment boom.
The household savings rate rose appreciably, exacerbated by fears of welfare state retrenchment, worsening the fall in aggregate demand.
[56][57][58][59][60][61][62][63][64] When the Social Democrats returned to power in 1994, they responded to the fiscal crisis[65] by stabilizing the currency—and by curtailing the welfare state and privatizing the public sector and goods as governments did in many countries influenced by conservative Milton Friedman, the Chicago School of political and economic thought and the global neoliberal movement.
[67] In the 21st century, many of the aspects of the social democratic welfare state continued to function at a high level, due in no small part to the high rate of unionization in Sweden, the independence of unions in the wage-setting and the exemplary competency of the female public sector workforce as well as widespread public support for welfare.
The Social Democratic Finance Minister increased spending on child support and continued to pay down the acquired public debt.
Feminist policies formed and implemented by the Social Democratic Party along with the Green Party and the Left Party (which made an arrangement with the Social Democrats to support the government while not forming a coalition), include paid maternity and paternity leave, high employment for women in the public sector, combining flexible work with living wages and benefits, providing public support for women in their traditional responsibilities for care giving and policies to stimulate women's political participation and leadership.
Initially, his leadership gave a rise in the opinion polls before being involved in a scandal surrounding benefits from parliament which after a period culminated in his resignation.
As a corporatist organ, it has also formed policy in compromise mediation with employers' associations (primarily the Confederation of Swedish Enterprise and its predecessors) as well as trade unions.
Organisations within the Swedish Social Democratic movement include: The SAP had its golden age during the mid-1930s to mid-1980s when in half of all general elections it received between 44.6% and 46.2% (averaging 45.3%) of the votes, making it one of the most successful parties in the history of the liberal-democratic world.
In 1944, the tides of the war had turned and the Allied nations looked to win, giving voters more confidence in voting by preference and explaining the more normal electoral result of 46.6%.
[85] In the 2022 Swedish general election, the Social Democrats remained Sweden's largest party, with 30.3% of the vote, however the right-wing bloc won a slim majority in the parliament.