"He who is in debt is not free." Göran Persson's trip to New York to ask for a loan and implement cutbacks has become a destructive and untrue myth in Swedish politics.
But the story about the crisis in the 1990s and the need for budget consolidation is not correct. The write the researchers Niklas Altermark, Max Jerneck and Elisabeth Lindberg on Aftonbladet 2023-06-21.
The interest rate spiral and the economic crisis were initially caused by the Federal Reserve's interest rate hike, not by Sweden's national debt.
The government's deficit reduces private debt
In addition, they did not increase the indebtedness of the Swedish citizens, but the government's debts were matched by reduced private debts.
The idea of expansionary austerity, of cutting government spending to win the market's confidence, has been proven wrong.
Today we know that cutbacks during recessions does not help the economy.
The Riksbank is in fact the institution involved power to stabilize interest rates, but at the time central banks' support purchases of government bonds were taboo.
Overall, the story is about Persson's journey and the necessity of budget consolidation not true, but it still lives on in politics.
Welfare builds a healthy economy. "He who is in debt is not free" is a lie when it comes to states with their own central bank and which do not have a fixed exchange rate.
Source: https://www.aftonbladet.se/kultur/a/0QOmVB/goran-perssons-hjaltesaga-ar-en-farlig-logn
S's problem is the Chancellor's right
I think S's problem is the chancellery house right which since 1982 effectively managed to make S compete to be more neoliberal and more against state investment than the citizens themselves. S implemented worse neoliberal reforms during their governments in the 1980s than the bourgeois in the 1970s. In 1985, S implemented the removal of obstacles to the movement of capital abroad. This meant that any taxation of the richest risks leading to capital flight. Then S implemented the credit deregulation which, in combination with less government money creation and a deteriorating subsidy system with market elements for rental construction, together led first to speculation and a price explosion in privately owned homes and then to a brutal financial crash in the 1990s. This financial crash was also due to S's crisis package in the late 1980s. This crisis package wanted to break the boom at the time. This boom had led to record low unemployment. This led to better working conditions and more workplace equality. It scared the life out of power. Thus, S together with bourgeois parties and V created the 1990s crisis to break employment to create power over the wage earners for capital. S's problem is the great influence of the right wing of the Chancellery.
Long history of dangerous right turns
Especially S's economic policy since the 1980s helped to create the public opinion hostile to the Social Democrats. Yes, something started already in the 1930s and 40s, when the party chairman began to take advice more and more from national economists with a heart to the right. Since 1968, when the industry, the economy, and public opinion were strongly in S's favor, leading men tricked and tricked one of Alfred Nobel's then old and senile granddaughters into approving the Economics Prize in Alfred Nobel's memory against Alfred Nobel's will. Nobel did not consider economics to be a science. Already in the 1970s, in time for the coup d'état from the right in Chile, the Nobel Foundation gave the peace prize to Milton Friedman. Friedman not only supported the coup d'état in Chile, but he also laid the foundations for the pseudoscience that has increasingly outlawed government investment in society. Friedman's national economic view has created our rampant inequality, unhealthy working life, market rents, financial crises, stock and house speculation, etc. So the right wing of the chancellery in S has, after all, hijacked S's politics and media strategies to oppose a left-wing S.
Altermark is also a co-author of a book about more social democratic betrayals, Kataly's book "We are cutting welfare to save welfare, see report with link on https://gemensam.wordpress.com/2021/12/10/socialdemokratiska-regeringars-nedskarningspolitik-beror-knappast-pa-dumhet/.
It looks a bit like the lie from 1980: we build out nuclear power to phase it out.
14 years ago, some prominent social democrats wrote the letter "Soon we will go without you", addressed to S. Where did they go?
As always, your comments are interesting.
Göran Persson has great responsibility for the deterioration through his attack on the lack of education as Minister of Education and for the development of the market school as Minister of Finance
Just!
Milton Friedman formulated the axiom of change. "Only a crisis - real or imagined - can bring about real change" - only in crisis stages and states of shock can neoliberal ideas take the initiative to privatize the commons, ban unions, abolish social welfare, set prices free and cement ownership and central bank supremacy. The financial crisis in Sweden in 1992, Asia in 1997 and the world in 2008 testify to this moment and disarmament.
The whole idea of neoliberalism is that market mechanisms should be allowed to rule over the destiny of humanity. The idea is that the economy should dictate the rules of society and not the other way around. They have spent hundreds of millions of dollars promoting neoliberalism as the natural and normal state of humanity.
The Chicago school with Milton Friedman as a portal figure stands for the promotion of the economic theory that is against all government regulation except when it comes to saving the same system.
The school not only broke ground in Latin America and the USA, but also in Europe with the currency collapse of the 70s crisis, the onslaught of neoliberalism in China and Russia in 1989 and 1919 respectively; Asia in 1997 and Sweden in 1992 in the financial crash. It proceeds brutally against the poor and the entire social system. The people are divided into an upper and lower class.
The same economic theories have been normative for many of the world's universities and economics courses. With the help of Riskbanken's economics prize in Nobel's memory in 1968, economic education is aligned around the world.
It has also influenced the economists of the World Bank and the IMF, which in turn has led to the governments of many poor countries being forced to auction off public property to private capital interests.
The same has happened in Sweden. After 1992, financial capitalism penetrates Sweden. Making money from money without creating new benefits and jobs. Money grows via securities, the higher market world and speculation on real estate. Grotesque forms develop in Asia and Africa through speculation on rice and crops with famine disasters as a consequence.
Business and industrial capitalism are based on product development and production. Through the "Swedish model", Swedish welfare was built up in dynamic collaboration in a win-win relationship. Society created conditions that benefited everyone. Welfare is a prerequisite for both society and business. A market cannot exist without human society.
Precisely the middle class, the working class, the unemployed, the disabled and the disabled all need each other for their prosperity, but also the country's wealth and the prosperity of the rich depend on everyone's equality, well-being and welfare. This also makes life more fun and the music and movies better.
The 70s and the oil crisis are breakthroughs for an anti-development.
After the oil crisis in the 70s and when the gold standard for the dollar disappeared in 1971, neoliberals smelled the currency speculation and with an armada of ice-cold system changers and a million-financed propaganda they stormed against the welfare and the Keynesian system. But the solution is not a more unfair system based on depletion of finite resources. The result is that a few take home the big pot as in a pyramid scheme.
Now these actors spend a lot of time blaming all the problems on the welfare state and claiming that the solution is an unrestrained free market.
The fact that the oil crisis was based on a compensation of currency losses, which spread financial imbalance, unemployment and devaluation is repressed. The currency war began and became the way via the currency snake, the ecu and the euro. That the speculation was linked to a gold standard and the oil cartel fell into oblivion. Just as little as the classical liberalism with an unregulated market already crashed during the depression years of the 30s, where a law was passed against the banks' corrupt trade and speculation and the new "deal" on national reconstruction.
Robert W Cox, Professor of Political Science said the following:
"Neoliberalism transforms the states from being buffers between external economic forces and the domestic economy into tools for adapting the domestic economy to the demands of the global economy."
In other words, it is the market, financial speculators and companies that set the rules for which policies are desirable and to attract capital and jobs the states bid under each other. The welfare state must be dismantled because the market demands it.
Nobel laureate and national economist Joseph Stiglitz, who for several years was chief economist at the World Bank, revealed how the IMF forced the countries in Asia, Africa and Latin America to do credit liberalization during the 80s and 90s.
"The IMF riots are painfully predictable. When a country is "down for the count, the IMF takes advantage of the situation and squeezes the last drop of blood out of them".
THE ORDER OF CAPITAL
How economists created the doctrine of austerity and paved the way for fascism
By Clara E. Mattei
FACTS
For more than a century, governments have responded to financial crises with austerity policies—reduced wages, reduced public spending, and weakened welfare—in order to save public finances. The policy has appeased lenders but at the same time had devastating effects on social welfare in countries all over the world. Today, the question must therefore be asked: what if healthy government finances were never the goal?
The creators of austerity policies admitted that the aim was to restore class divisions.