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Political Economy


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Heavy believe in radical capitalism is pushing the Swedish egalitarianism to the rear

Saturday, 23 February 2013
The growing believes in radical capitalism and increasing quest for wealth and the Americans - style wealth grab has changed the Swedish society. This has means that wealth gap between workers, students and old is so wide that there is growing concern.

The reality on the ground, according to a new study shows that those who are doing well, economically, are doing very well and those who are not are sinking more and faster than could have been imagined.
 
The last 20 years has seen the economic gaps in the Swedish society widened sharply, questioning the tenet of the Swedish so called egalitarian society. The sector where there has been a more observed variation has been the increases in the difference between those who have a job and those outside the labour market. "Earned income tax credit has clearly increased the gap," said Hans Heggeman, analyst at Statistics Sweden.

A person who worked in 1991 had a disposable income of an average of Skr166,400 per year. Anyone who was unemployed, on sick leave or retired had Skr144,200 to live on. The difference amounted to Skr22 000.

Since then, the gap has increased significantly. In 2010, those who worked lived on Skr83 000 or slightly more.

The latest figures from Statistics Sweden show that inequality increased the most in the 2000s. From 1999 to 2011 the economic standard of 41 percent for those who worked rose, while the increase stayed at 9 percent for those not gainfully employed. These are pensioners, students with student with student loans and people on sick leave.

In 1999, those who were not in gainful employment, 75 percent of them had an improved economic standard as a working person had. By 2011 this figure had fallen to 58 percent.

One driver for the large inequality in income is that people who are gainfully employed benefit from various forms of earned income tax credits. The purpose of the earned tax credit is that more people will have the incentive to look for work. Although the authorities posit that there are no studies on the matter yet, they believe that their models show that the tax credit will lead to more people entering the labour market.

Some critics of the government policy believe that the government want to force students to drop out of school and do anything, not developing the skills of tomorrow by going to school and gaining knowledge in fields such as engineering and medicine, which are badly needed for Sweden's economic survival in the future. The young people and other people who want o improve on their skills are being forced out of those processes and to get to work doing anything just to gain tax credit for survival.

Also there older people and the sick much get out there and get a job such that the Swedish compassionate economy or society has been taken over by aggressive capitalism which has means that money means more than skill development for the future, care for the sick and comfortable retirement.
By Scancomark.com Team

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