Who Spends More on Social Welfare: the United States or Sweden?

If the adjustments for purchasing power are correct, net public social expenditures by government in America in 2003 ranked roughly in the middle of the Nordic countries. Per capita net public social welfare spending in 2003 (in 1990 dollars) in the U.S. was $5,400, while Sweden’s was $6,300, Norway’s $5,900, Denmark’s $5,472, and Finland’s $4,200.

The U.S. differs from the Nordic countries in that it is a safety-net society. Workers and people with adequate incomes purchase directly, or receive through their employer, private life insurance, health insurance, and pension plans. Many make charitable donations for social welfare purposes. Public benefits are available for the elderly, for the disabled, and for families whose incomes fall below various poverty lines. Meanwhile, the Nordic countries adopt a more universal, government-sponsored approach. If we take into account these differences in style, the appropriate measure is net public and private social welfare expenditures per capita. By this metric, the U.S. then leads the way at $7,800, followed by Sweden at $6,700, Norway at $6,300, Denmark at $5,800, and Finland at $4,900.
Freakonomics