Political Economy

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The Swedish prime minister and his government accused to satisfying it base rather than building for the future

Wednesday, 16 October 2013
The Swedish government has been accused of playing to its based – the working class and big businesses by borrowing up to 20 times to fund tax cuts rather than invest in good schools and improved education systems.

This comes from Mikael Damberg, representing Social Democrat leader, Stefan Löfven who is not a parliamentarian as he attacked the Prime Minister, Fredrik Reinfeldt, in the head of party debate in the Swedish parliament earlier on Wednesday.

Reinfeldt fought back and accused the socialists of planning to increase taxes on working people.

Putting Social investments in education and attacking the government's persistent tax cuts policies were Mikael Dambergs tactics when he opened the party leaders’ debate in parliament on Wednesday morning.
Social Democrat leader, Stefan Löfven
Social Democrat leader, Stefan Löfven / Granscole
Damberg for the Social Democrats' claim that “I think the voters are tired of a government that chooses new tax cuts instead of investing in schools,” said Damberg who opened the debate.

He posit that the figures reported show that the sum the government borrows to fund tax cuts is 20 times larger than the Alliance coalition’s commitment to investment in education and schools.

“The government is opting out of schools. Instead we (the Social Democrats) want to provide resources for smaller school classes, invest in teachers and reduce administrative wastes” said Damberg.

He described the government's jobs policy as a massive failure and referred to the higher unemployment rate now in Sweden, greater than when Reinfeldt took over as Prime Minister.

“Sweden has managed unemployment worse than comparable countries. It is time for a change,” said Damberg and referred to the Social Democrats' promise of jobs, internships or training to young unemployed person within 90 days.

Prime Minister Fredrik Reinfeldt countered by highlighting tax increases that Social Democrats are proposing, and which according to the leader of the Moderate party would damage the Swedish economy.

“What Damberg never tells is what is actually contained in the Social Democrats' budget plan. You want to raise taxes by Skr30 billion, to add Skr8 billion more in the social benefits system and Skr8 billion in to old employment policy. How can it lead to more jobs? Reinfeldt asked rhetorically.

The leader of the Moderate party and prime minister warned of the impact on the economy and job creation if the Social Democrats institute high employers’ fees of young people and increased restaurant VAT and higher income taxes.
By Scancomark.com Team

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