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 Party wants the state to pay for Sweden to abolish the qualifying period deduction. The qualifying period deduction means that many people 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 ironclad wage law, this means 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 budget is becoming 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 sick leave costs as private individuals. These insurances now have a high plus as they have made it worse for the sick. Tax-cutting governments have used surpluses to finance tax cuts that have mostly gone to the rich.
Increased welfare does not increase inflation if we simultaneously satisfy real needs such as healthcare and/or increase productivity.
Read a summary of the Left Party's election platform here!