The Swedish welfare state is facing the greatest threat since its ince
ption Attacks stem from the country's sharp economic downturn since 19
89 and the related currency crisis of September 1992. Politicians of t
he right and left have responded to the economic crisis by initiating
cutbacks in social welfare programs and supporting policies that will
lead to a massive transfer of income from working people to corporatio
ns. The focus on cutting social programs is misplaced. The Swedish eco
nomy flourished for decades with the network of social service program
s in place; the welfare state cannot be blamed for economic problems t
hat have only recently arisen.