The left party wants higher wages by raising the floor in welfare. A raised floor will lead to higher wages, increased equality for those who are out of work and better competitiveness for the industrial nation of Sweden.
The left-wing party wants the state to pay for Sweden to abolish the retirement allowance. The retirement allowance causes many people to go to work sick and spreads ill health that lowers workplace productivity.
The Left Party "has spoken that it sees a need to raise taxes by 50 billion next year to pay for investments in welfare. Reducing the deductions for household services or renovations, so-called root and root deductions, has also been mentioned.
The goal is that 80 percent of those who work and become ill or have parental leave should be able to receive the equivalent of 80 percent of their salary in compensation.
And those who have sickness benefits, what was previously called early retirement, should also be able to receive 80 percent of what is called assumed income, that is, what they are deemed to have been able to earn if they had been able to work. That would mean several thousand more kroner a month for those concerned, claims V."
Source: https://www.gp.se/nyheter/sverige/v%C3%A4nsterpartiet-slopa-karensdagen-1.79479746
According to the the iron-clad wage law what this means is that when we strengthen social insurance (if the Left Party gets its way) wages will rise.
The Left Party also wants to strengthen the unemployment fund.
Equality strengthens competitiveness
If you believe in equality and good competitiveness, it is difficult to argue against raising the welfare floor.
Bank economists claimed in Dagens Industri that the state's budget is starting to become dangerously low for the Swedish economy.
Welfare has lost 400 billion per year since 1990
Since the bourgeois Alliance began to govern in 2006, the tax ratio as a percentage of GDP has fallen from 45,9 percent to 42,5 percent in 2021, a decrease of 3,4 percentage points. In kronor, this means reduced tax revenue of 185 billion per year. If in 2022 we took the same share of GDP in taxes as in 1990, the public sector would have had 400 billion more per year, according to LO. If you look internationally, strong industrial countries usually have a not too low tax rate. That the Left Party can then offer so much restored welfare for only 50 billion per year is fantastic.
Then the employer contributions, which are deferred wages, finance our sickness absence costs as private individuals. These insurances now go with a high plus as they have worsened so for the sick. Surpluses have been used by tax-cutting governments to finance tax cuts that mostly went to the wealthy.
Increased welfare does not increase inflation if we simultaneously satisfy real needs such as healthcare and/or increase productivity.
Read one summary of the Left Party's election platform here!