The notion of social policy as a productive investment and a prerequisite for economic growth became a core feature in the ideology of Swedish social democracy, and a central component of the universalism of the Swedish welfare state. However as the Swedish Social Democratic Party (SAP) embarked on its Third Way in 1981, this outlook on social policy as a productive investment was replaced by the identification of social policy as a cost and a burden for growth. This book discusses the components of this ideological turnaround from Swedish social democracy’s post-war notion of a strong society, to its notion of a Third Way in the early 1980s. It is a novel and innovative contribution to the history of Swedish social democracy and recent developments in the Swedish welfare state, and it also sheds light on contemporary social policy debates. It will appeal to a wide readership from students of contemporary history and politics to policy makers and specialists.