Why did Sweden move from socialism to a more mixed economy in the 1980s?

The transition that Sweden made from a more socialist-based economy to a mixed economy in the 1980s can primarily be attributed to the citizens' objections to the high rates of taxation that were necessary to fund extensive welfare programs. As the economy faced challenges, including rising unemployment and global economic shifts, there was growing public discontent regarding the sustainability of high taxation levels and the burden it placed on workers and businesses. This discontent led to increased demands for economic reform and a reevaluation of the socialist policies that had previously characterized the nation’s economic structure.

As citizens began to advocate for changes, the government had to respond to these pressures, which resulted in the introduction of policies that fostered a more mixed economy. This approach allowed for greater market dynamics while still maintaining some aspects of the welfare state, ultimately aiming to create a more sustainable economic environment that balanced social needs with economic growth.