Anders Borg admitted it himself in 2005. It was a misvalued exchange rate and a poorly managed macro regime that caused the crash in welfare in the 1990s. Welfare had to bear the blame as the cause and was to be dismantled. Instead, the private sector and the market would have a greater influence in the future. Reinfeldt said the year after the financial and banking crash. "The welfare state is an impossible construction!"
In disguise and without any tradition of worker solidarity, the Moderates emerge as "the new Workers' Party" in 2006.
We see the results of politics in scandals and in the increasing number of destitute people. Unemployment is even higher than in 2006. All the while, a hidden sale of social functions is taking place at bargain prices.
Welfare delivers
For 30 years, economists have said that a system change is necessary because the welfare state is an impossible utopia. SAF has driven public opinion against welfare since the 1970s.
Fredrik Reinfeldt wrote in his book "Det sovande folket" that "Swedes were mentally disabled and indoctrinated to believe that politicians could create and guarantee welfare."
The statement is profoundly anti-democratic as Reinfeldt must have known the reason.
The shock wave that laid the foundation for the 1990s crash is documented in the form of the 1970s global currency and oil crises, which caused negative trade balances with rising costs. In Borg's words, it was a macroeconomic disaster and it has not penetrated either politics or the media.
"The Nixon Shock".
President Richard Nixon decided to end the direct convertibility the dollar held to gold on August 15, 1971. This results in the collapse of the Bretton Woods system. The reason was that the dollar was a world currency backed by gold. All other currencies were in turn hedged in dollars according to the Bretton Woods agreement 1945-1971. The Vietnam War consumed large parts of the gold reserve.
When the dollar collapsed, it came to drag other major currencies with it, which in turn dragged the Swedish currency to the bottom. That is why the crisis came right across the world.
One effect was that heavy industry such as shipyards disappeared to the low-wage countries of Asia. The tech industry as well. This affected Sweden, which lost its large shipyards in Arendal, Götaverken, Uddevallaverken and the industry in Borås.
From 1965, the costs of the Vietnam War increased. In 1965, the United States had 24 advisers in Vietnam for the spring of 000 to have 1968 soldiers.
At the same time, the American economy was booming during this time. This led to higher prices of goods, higher wages and higher bank interest rates. The war industry was an engine. At the same time, almost for the first time in history, the United States had a trade deficit with the rest of the world. Imports from Germany and Japan increased dramatically.
When the dollar was devalued by 20% against the value of gold in 1971, the US gold reserve began to decline rapidly. Nations and financial institutions began redeeming their dollar reserves in gold. In 1971, the United States sold more than 30 tons of gold out of approximately 000 tons.
The US abandoned the gold standard
The USA therefore chose in August 1971 to decouple the dollar from gold. The Bretton Woods system that had operated since 1947 collapsed. It allowed the FED to print more money than it had in gold.
An inflationary wave spread across the world. The currency war began. OPEC locks oil in gold. The price of oil multiplies. Trade deficits and unemployment follow in Europe. Now the myth is being created by right-wing actors that: "The Norwegians live beyond their means and welfare is unsustainable!"
National economist Sven Grassman (1940–1992) discovered that it was the oil price in the 70s that was the culprit in the drama. Welfare became the scapegoat. Grassman was outmaneuvered in his research work.
Self-harming behavior in being an exporting country
Today's pSince the 1970s, the Finnish export economy has been based on keeping Sweden poor through the fiscal framework for us to get rid of our production by selling cheaply abroad. Slavery or self-chosen colonialism?
Hm you missed, important things we reduced our working hours but increased our wages went from a low tax country to a high tax country..
No one can afford to buy our products but the high price of manufacturing, See Tekå, shipyards, Submarines, Saab, Volvo pv, Volvo buses, solar panels, Ericsson phones, Meat,
etc.…
The shortening of working hours came about because we had become more efficient. In many jobs today, each employee generates several million in profit per year.
Our exports are very high and rise in booms. I don't believe that nobody wants to buy our products.