The documentary "The wage cuts” shows that Sweden's governments, since the bourgeois ones in the 70s, have followed the business world's propaganda that in order to maintain the investment capacity of companies and the ability to create full employment, the wage earners' share of GDP must be held back. The wage increase has since been held back. Profits have skyrocketed. But the investments and employment have not been in relation to what was expected. This is because:
- Wage earners with an increasingly lower share of GDP in income cannot keep up consumption at the same rate. Domestic consumption constitutes a significant proportion of a country's total internal demand. When this decreases, there is no need for staff as fewer people buy
- Swedish export surpluses are matched by deficits in other countries such as Spain and Greece. When these are forced into austerity, they cannot import from us to the same extent.
True economics works for equality.