Yes, that is the prediction made by the Swedish department of finance. The Swedish welfare state, the mother of all welfare states, is going to be dead in 20 years time.
The Communist idea of low income disparity will have to be completly abandoned. The leading Social Democrats have already abandoned it long ago.
There is no money left to fuel the welfare system. Or really, there is lots of money, but gathering it is becoming more difficult. The Swedish tax burden is already 54% of the GDP. Such high taxes have no future. But the money for health care, schools and care-taking is still running out.
Growth is a much better solution, but it requires further tax cuts and will place the public sector in a worse situation. It will need more tax money for the higher wages, tax money which will - most likely - just barely be covered by the net budget surplus created by economic growth. In other words, Sweden will become richer, but stealing will become harder. Growth will thus not save the Swedish folkhem in its current form.
(Edit: corrected erroneus statement about tax money and wages in the public sector)
It is quite clear that the Swedes, with their high taxes, do not get value for their money. The health care system is in a deep crisis. The only viable solution is a neo-liberal one, based on private insurances and personal responsability. I think we as a people (us Nordic folk that is) are ready to take that step. Since it will not be possible to steal money and give it back in the form of welfare, let people keep their money and buy their services themselves from private companies.
As a side effect, this will also eliminate the need for the more and more unpopular laws controlling our personal lives.
The Communist idea of low income disparity will have to be completly abandoned. The leading Social Democrats have already abandoned it long ago.
There is no money left to fuel the welfare system. Or really, there is lots of money, but gathering it is becoming more difficult. The Swedish tax burden is already 54% of the GDP. Such high taxes have no future. But the money for health care, schools and care-taking is still running out.
Growth is a much better solution, but it requires further tax cuts and will place the public sector in a worse situation. It will need more tax money for the higher wages, tax money which will - most likely - just barely be covered by the net budget surplus created by economic growth. In other words, Sweden will become richer, but stealing will become harder. Growth will thus not save the Swedish folkhem in its current form.
(Edit: corrected erroneus statement about tax money and wages in the public sector)
It is quite clear that the Swedes, with their high taxes, do not get value for their money. The health care system is in a deep crisis. The only viable solution is a neo-liberal one, based on private insurances and personal responsability. I think we as a people (us Nordic folk that is) are ready to take that step. Since it will not be possible to steal money and give it back in the form of welfare, let people keep their money and buy their services themselves from private companies.
As a side effect, this will also eliminate the need for the more and more unpopular laws controlling our personal lives.
But that wasn't really my point.
