political-economy

Weather Forecast





Regional News
Advertisement

































Income gap widens in Sweden as the poor get poorer and the rich get richer signalling the death of welfarism

Wednesday, 28 December 2011
Sweden has changed in 5 years and it can now be clearly exemplified in the rate at which income gap has widened within the country folk.

Many people however, have been better off financially, according to Statistic Sweden in a latest assessment of how the Swedish people are doing income-wise.

But one thing stands clear; those with the lowest incomes appear to fall behind, thus seeking more state aid to survive even though some of them might be working very hard. Even the Swedish finance minister, Anders Borg, has noticed this and feels that it looks troublesome.

Between 2005 and 2010 the vast majority of households in Sweden had more money at their disposal to play with. Today the group that have seen their disposable income per year fall has increased and it looks like the fall is growing with time.

This is shame because of two things
One Sweden maintains very high taxes because of the belief that the taxes are used to adjust income inequality. This means that those who earn higher incomes, pay higher taxes and vice versa as such the income inequality will be equalise through various forms of subventions given to low income earners to meet the high standard of living... Yeah? Lies!

Secondly, internationally Sweden is known as a country where there is almost equal income distribution. Sweden has always been cited several times as an example of the country in the world where its society enjoys generous welfare and income equality. Sorry, that time has passed.

Now the rich get richer while the poor get poorer.
The Swedish governing system which has also been praised in the world as a more democratically responsive system, that is, a system that listens to the people and helps the people to help the country is no longer doing so. When big power companies for example exploit poorer low income people with high electricity prices, the government would just say that it is the effect of market forces.
When privatised healthcare systems or school operators ferry tax payers money to tax havens, the government react by saying that they will look into it but nothing is done.
 
This is because these companies fill the state coffers and keep the Swedish public finance in great shape.

More pain will even come in the next year when the effect of stock market failure would have started biting and  prayers also be that house prices should not fall and interest rates should not be too lowered that could create chose in the already confusing Swedish housing market..
By Scancomark.se Team


| Print Friendly and PDF| Write to the editor | Complaint about this article | Make a Comment |






Front Page | Market News |Companies News | Competitiveness | Regional


About Us | Contact Us | Terms and Conditions |Copyright Policy | Privacy Policy |About Cookies

Scandinavian Companies & Market Magazine 2010, Granscole Establishment Sweden AB. Registered in Sweden as a Media Company Organisation Number: 556782-6572
 

Back to top