The Meidner Plan, designed by the LO (Sweden’s labor central) in the 1970s, proposed an annual levy on profits that would then be converted into shares and placed in a central fund controlled by unions (which at the time represented over 80 percent of workers).

The funds could be democratically allocated to regional and sectoral development and, over time, majority ownership of the nation’s productive assets would shift from private owners to the Swedish working class.

But the issue of time turned out to be a major problem: throughout the transition, the Swedish economy would remain dependent on the same private corporations the plan sought to expropriate.

Warning that they would instinctively hold back long-term investment if their property rights were threatened, and arguing that efficiency, stability, and even living standards would suffer irreparable damage if the transfer of ownership took place, corporations mobilized aggressively against the Meidner Plan.

Countering business’s threat demanded a broad, aggressive response, including blocking corporations from running down their assets or leaving the country. But such a dramatic rupture with capitalism was not on the agenda, and the LO’s proposal — elegant in theory but contradictory economically and politically — went down in defeat and was never revived.