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Nacka is a municipality just south of the Swedish capital of Stockholm, with less than a hundred thousand citizens. It is also the place where Milton Friedman’s ideas of welfare vouchers found their testing ground, through a surprising revolt against social democratic hegemony. The story of the Pysslingen revolution in Nacka teaches us that an activist approach, where reformist local government side-steps a statist central government, can sometimes pave the way for innovative ideas.