The Swedish government accused of creating inflation and heaping misery on the people 


Wednesday, 22 June 2011
The Swedish government has been accused by the opposition Social Democrats of driving up inflation.
In the last parliamentary debate before the summer recess, the Social Democrats' economic policy spokesman Tommy Waidelich said that increased inflation is affecting people’s debts.

The expansionary economic policy that the government is pursuing is one of the reasons that inflation has picked up, claimed Waidelich, as he debated on the Spring Budget Bill.

"We have an economy that is characterized by emerging bottlenecks, skills shortages, housing shortages, and deferred maintenance of infrastructure. It is driving inflation and interest rates. Will the finance minister withdraw the proposal for an additional earned income tax credit and not add to the debt the people, an additional burden in the form of higher interest rates "asked Waidelich.

Finance Minister Anders Borg, chose to refer to the strong economic growth in Sweden and the National Institute of Economic Research’s report in the morning which talked of Sweden having a strong economic growth despite turmoil in the world.

In addition, other analysts, such as the International Monetary Fund, pointed to significant positive effects of the previously executed job tax credits. And that the deduction helps raise household demand and consumption.

"Everybody says that the earned income tax credit increases employment and recommend us to implement more tax cuts. And in this uncertain situation with an ongoing crisis of the Greeks, is it not the time to secure demand, "said Borg.
By Team

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