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Forestalling the business veto: investment confidence and the rise of Swedish social democracy, 1932-1936

Forestalling the business veto: investment confidence and the rise of Swedish social democracy, 1932-1936
Forestalling the business veto: investment confidence and the rise of Swedish social democracy, 1932-1936


Objective. We investigate the causes of the stability of Swedish business confidence in the early 1930s. Surprisingly, investors seemed unruffled by the Social Democrats’ heterodox “Crisis Program,” a proto-Keynesian response to the Great Depression. This research allows a productive modification of the argument that the state is dependent on private capital formation.

Methods. Analysis of stock markets, currency prices, patterns of domestic investment, as well as written primary sources in Swedish and English.

Results. The cross-class cooperation practiced by the Social Democrats, and the lack of a threat of radicalization, had an important calming effect on investors.

Conclusions. To avoid capital flight and resulting economic dislocation, reformist governments must cooperate with business and conservatives, and turn away from workers and revolutionaries.
0038-4941
91-110
Anderson, Karen M.
219ba2d8-cef1-42f9-8153-19b855784e7d
Snow, Steven G.
a94a78b9-2e22-4721-a73f-7608adf0bc89
Anderson, Karen M.
219ba2d8-cef1-42f9-8153-19b855784e7d
Snow, Steven G.
a94a78b9-2e22-4721-a73f-7608adf0bc89

Anderson, Karen M. and Snow, Steven G. (2003) Forestalling the business veto: investment confidence and the rise of Swedish social democracy, 1932-1936. Social Science Quarterly, 84 (1), 91-110. (doi:10.1111/1540-6237.t01-1-8401006).

Record type: Article

Abstract



Objective. We investigate the causes of the stability of Swedish business confidence in the early 1930s. Surprisingly, investors seemed unruffled by the Social Democrats’ heterodox “Crisis Program,” a proto-Keynesian response to the Great Depression. This research allows a productive modification of the argument that the state is dependent on private capital formation.

Methods. Analysis of stock markets, currency prices, patterns of domestic investment, as well as written primary sources in Swedish and English.

Results. The cross-class cooperation practiced by the Social Democrats, and the lack of a threat of radicalization, had an important calming effect on investors.

Conclusions. To avoid capital flight and resulting economic dislocation, reformist governments must cooperate with business and conservatives, and turn away from workers and revolutionaries.

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More information

Published date: March 2003
Organisations: Faculty of Social, Human and Mathematical Sciences

Identifiers

Local EPrints ID: 376863
URI: http://eprints.soton.ac.uk/id/eprint/376863
ISSN: 0038-4941
PURE UUID: 23fd69a6-2ff0-4fd7-ba4b-6449d5af5f4c

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Date deposited: 07 May 2015 13:45
Last modified: 08 Jan 2022 12:21

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Contributors

Author: Karen M. Anderson
Author: Steven G. Snow

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