I make the argument against Sweden as a socialist paradise quite often. It usually goes like this:
4 Arguments against Sweden as an example of socialist success
1) Sweden’s wealth can be attributed to the fact that it has been peaceful longer than any other country in Europe, including Switzerland. It used to have a radically free economy. Completely free trade. It even had competing currencies until 1903.
2) Sweden’s welfare state ballooned in the 50s and 60s. Since then, Sweden’s economy has slowed considerably. In one albeit controversial study published in the Swedish Economics Association’s journal Ekonomisk Debatt in 2009, Ratio Institute economists Bjuggren and Johansson found that there has been NO JOB CREATION AT ALL in the private sector from 1950 to 2005.
3) Sweden is still has some economic freedom. Their corporate tax rate is considerably lower than the US’s. They rate extremely well on Heritage’s scale (18th).
4) Even if you think these argument are BS (which they aren’t), you have to ask yourself why the Swedish people elect politicians who call themselves conservative and cut taxes. In 2010, they re-elected politicians who cut taxes on everybody, including the super rich.
Side note: My libertarian friends in Sweden are outraged that the reforms in Sweden which pass for free-market reforms are thinly veiled corporatism and other corruption.