In a new “Economics 101” video released today by the Center for Freedom and Prosperity Foundation (CF&P), Lotta Moberg, graduate student at Lund University, Sweden, explains that the economy of Sweden began to stagnate about 40 years ago because of excessive statism and government spending.

Sweden serves as a powerful example of the importance of public policy. Having once become rich when government was small, this Nordic nation began to stagnate as welfare state policies were implemented in the 1970s and 1980s. This video explains that Sweden is now shifting back to economic freedom in hopes of undoing the damage caused by an excessive welfare state.