Why Does Sweden Have So Many Start-Ups?

“Sweden used to have a heavily regulated economy in which public monopolies dominated the market, which made it difficult for such replacements to occur, but regulations have since been eased. While Sweden was making it harder for monopolies to dominate the market, the U.S. was changing its regulatory landscape to favor big companies and established firms (largely through overturning anti-monopoly laws and permitting industry consolidation), argues Lars Persson, an economist at Sweden’s Research Institute of Industrial Economics who has studied new-business creation in Sweden.”

“Sweden also gives some credence to the controversial idea that cutting corporate tax rates can help stimulate entrepreneurship. The reforms of 1991 lowered corporate income taxes from 52 percent to 30 percent. (Sweden’s corporate tax rate today, at 22 percent, is much lower than the U.S.’s 39 percent, though few companies actually pay a rate that high.)”

“Before the 1990s, there was also little foreign competition in Sweden. Protectionist legislation prohibited foreigners from taking substantial ownership in Swedish companies, and fewer than five percent of private-sector employees worked in foreign-owned companies in the 1980s. Then, Sweden opened its market to foreign competition in the 1990s, which helped in a few ways. Instantly, there were more companies that could acquire mature start-ups, which added to the incentives to start new businesses; Mojang, the gaming company, for instance, was acquired by Microsoft for $2.5 billion in 2014. And inefficient domestic firms that weren’t able to compete with foreign firms tended to go out of business, creating a vacuum in which new companies could arise. The share of foreign ownership of Swedish companies shot up from 7 percent in 1989 to 40 percent in 1999.”

https://www.theatlantic.com/business/archive/2017/09/sweden-startups/541413

http://archive.is/AdTzc

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Education Isn’t the Key to a Good Income

A growing body of research debunks the idea that school quality is the main determinant of economic mobility.

“…differences in local labor markets—for example, how similar industries can vary across different communities—and marriage patterns, such as higher concentrations of single-parent households, seemed to make much more of a difference than school quality. He concludes that factors like higher minimum wages, the presence and strength of labor unions, and clear career pathways within local industries are likely to play more important roles in facilitating a poor child’s ability to rise up the economic ladder when they reach adulthood.

https://www.theatlantic.com/education/archive/2017/09/education-and-economic-mobility/541041

http://archive.is/fNg6M

Seattle parent who started campaign to wipe out school-meal debt takes effort statewide

Jeff Lew has already helped raise nearly $100,000 to wipe out the lunch debt in five Washington districts. With the message that no child should have to go hungry or be shamed if their families can’t afford a school meal, his campaigns have netted donations from community members, businesses and even Grammy-winner John Legend.

Now, Lew is taking the campaign statewide. The Seattle parent hopes to raise at least $600,000, which is the estimated total amount of lunch debt in districts across Washington.

http://www.seattletimes.com/education-lab/seattle-parent-who-started-campaign-to-wipe-out-school-meal-debt-takes-effort-statewide/

http://archive.is/p0gMH

On Health Care, Private Sector May Show Congress the Way

“41 big American companies that have banded together to try to save money and lives on their own, without waiting for Congress to pass a new law.”

http://reason.com/archives/2017/08/14/on-health-care-private-sector-may-show-c

http://archive.is/zhvQx