Sank the Swedish salaries. That's what the blue Alliance government wanted in 2006. That's how the Alliance's attack on wages began.
It was fatal that the blue Alliance undermined the trade union. Another attack was to make it more difficult to get social insurance and benefits. Consequently, this blue constellation lowered the compensation levels of social security and benefits. The reservation wage would drop. The reservation salary is the lowest salary a job seeker or someone who is going to change jobs can imagine.
Wages 30 percent too low
In the end, wages fell, shows a new research review from Arena idea. Just like in the US and many other industrialized countries, wages are now 30% too low for society and the market to function optimally.
the OECD points to solutions for low- and middle-income earners such as:
- have strong collective agreements
- maintain minimum wages
- increase opportunities for further education and retraining
The Tidö government weakens for low and middle income earners
What then does the Tidö government?
"Our new conservative government wants to reduce the transition study support. This year, for 2023, they are also withdrawing 25 education places from adult education and reducing other labor market policy efforts by almost 000 percent.
With the support of the Sweden Democrats, the conservative government would rather give short-term profits to employers than a functioning economy and higher wages for employees."
But the Social Democratic minority governments did what they could to strengthen wages in 2014-2022. However, these red-green governments needed the support of the bourgeois opposition. Otherwise, the red-greens could not strengthen the position of low- and middle-income earners. The Social Democrats had a hard time getting bourgeois parties on board with this.
An expanded public sector is an important part of a policy for full employment and a good economy for low- and middle-income earners. This requires increased taxes for the richest. In January 2023, millionaires and billionaires have asked those in power for higher taxes.
In addition, it is important that the state dares to join deficit again to meet the needs of society, the people and the environment and strengthen competitiveness.