Swedish Welfa Some Find It More Rewarding Not to Work

http://www.brusselsjournal.com/node/2027

Swedish Welfa Some Find It More Rewarding Not to Work
From the desk of The Brussels Journal on Wed, 2007-04-04 12:35

An article by Nima Sanandaji, the president of the Swedish think tank
Captus

In many European nations taxes, government regulation and public
programs have expanded rapidly during the past 50 years. Many people
today are dependent on government jobs and handouts whilst others are
paying into the system year after year. The political discussion in
Western European nations has focused on the short term interest of
various interest groups. It might be useful to break the status quo of
the political debate and ask ourselves what social model makes sense
for Europe.

Sweden is often used as an example of the modern European welfare
state and might thus serve as a model for policies in Western Europe.
Since the political landscape radicalized in the 60s an important
change has occurred in the country. The high taxes and the generous
welfare programs have led to a situation where the number of people of
working age who are living off public welfare has risen from around 10
to over 20 percent. Reduced incentives to work and labour market
regulations have also affected the situation for immigrants.
Immigrants have gone from being a group who had a larger labour market
participation and higher incomes from working compared with native
Swedes to becoming a group that to a large degree lives off taxpayers'
money.

What are we trying to achieve through welfare programs and income
redistribution?

A report from the National Institute of Economic Research, a Swedish
governmental organization, shows that the incentives to go from
handouts to work are relatively small for Swedish workers. The report,
published in December 2006, looks at a typical Swedish worker whose
employer pays 300,000 Swedish Kronen in employer's tax and salary
(corresponding to some 32,000 Euros). Under the past Socialdemocratic
government this person would only gain 12 percent of the 300,000 by
working rather than living off unemployment insurance. The reforms
implemented by the recently elected center-right government would
increase this figure, but only to 14 percent.

If the salary of this worker including employer's tax is said to be
around 14 Euros an hour and he or she worked a typical 8 hour work
day, the reward for going to work would be less than 16 Euros per day.
But there are also costs associated with working. Going out to lunch
rather than staying at home to eat might cost an extra 4 Euros per
day. Travel to work might bring on an additional expense of 5 Euros.
The reward to the individual for a hard days' labour would thus shrink
to only some 7 Euros for each day spent working. If the alternative to
work is a black market job, there would be a considerable loss in
going from unemployment to employment.

A recent survey in Sweden showed that a majority of company owners
have experienced that people come to job interviews for employment
that they are clearly not interested in. The motivation for turning up
to these interviews is rather to convince the government that they are
actively seeking employment. This is the result of a system that
barely rewards the individuals who work.

The European welfare states are based on the idea that individuals
only make use of welfare programs when they absolutely need to and
that the strong work ethic prevents people from taking advantage of
the system. But people slowly adapt to the system and the work ethic
declines in view of the low rewards for hard work. We must ask
ourselves if this situation is what Sweden's welfare programs were
constructed for. Is it reasonable that welfare systems originally
designed to help the very poorest now encompass a large fraction of
the national economy? Is it fair that hard work is punished whereas
dependence is rewarded? There is a need for a moral and principled
discussion of the social system that exists in Sweden and that is
mirrored in most European nations.

* Writers:
o Chresten Anderson, Copenhagen
o Ernest Baert, London
o Alexandra Colen, Brussels
o Fjordman, Norway
o Chris Gillibrand, Brussels
o Hjörtur Gudmundsson, Reykjavik
o Daniel Hannan, London
o Elaib Harvey, Brussels
o Martin Helme, Tallinn
o Waldemar Ingdahl, Stockholm
o Filip van Laenen, Oslo
o Carlo Stagnaro, Turin
22 hours 54 min ago

"PJ O'Donovan" skrev i meddelandet
oups.com...
http://www.brusselsjournal.com/node/2027

Swedish Welfa Some Find It More Rewarding Not to Work
From the desk of The Brussels Journal on Wed, 2007-04-04 12:35

Could be possibly interesting for Mr O`Donovan to know about the Swedish
economy. There's a plus in the trade balance against the outside at an
amount of around 170billion SEK/year. There's a plus in the government
finances at the amount of 64 billion SEK/y . The currency have gained
against the USD from around 11SEK a few y ago until today's 6,94 against
the US$. So what's used in the country is paid from the country itself.

Lennart Petersen wrote:

"PJ O'Donovan" skrev i meddelandet
oups.com...
http://www.brusselsjournal.com/node/2027

Swedish Welfa Some Find It More Rewarding Not to Work
From the desk of The Brussels Journal on Wed, 2007-04-04 12:35

Could be possibly interesting for Mr O`Donovan to know about the Swedish
economy. There's a plus in the trade balance against the outside at an
amount of around 170billion SEK/year. There's a plus in the government
finances at the amount of 64 billion SEK/y . The currency have gained
against the USD from around 11SEK a few y ago until today's 6,94 against
the US$. So what's used in the country is paid from the country itself.



Besides which unemployment is low, standard of living high, and the economy
is generally booming. Sweden has a large number of big top - class
companies. A real success story as compared to the world's most powerful
Third World country (the USA)...Sweden could teach the world some lessons on
how to run a successful country. They've managed to handle well problems
that other sclerotic European countries (France, Germany...) have deemed
"intractable...

IIRC Sweden is home to Europe's richest person (IIRC the guy that owns H &
M)...which proves that both private wealth and state enterprises can exist
well side - by - side... :-)

As for Peej's "Brussels Journal", it is hardly a news source, just
apparently the natterings of some old right - wing bloggers. As a "news"
source it's risible at best...

--
Best
Greg

Make credence recognised that on Thu, 05 Apr 2007 14:25:11 GMT,
"Lennart Petersen" has scripted:

"PJ O'Donovan" skrev i meddelandet
roups.com...
http://www.brusselsjournal.com/node/2027

Swedish Welfa Some Find It More Rewarding Not to Work
From the desk of The Brussels Journal on Wed, 2007-04-04 12:35

Could be possibly interesting for Mr O`Donovan to know about the Swedish
economy. There's a plus in the trade balance against the outside at an
amount of around 170billion SEK/year. There's a plus in the government
finances at the amount of 64 billion SEK/y . The currency have gained
against the USD from around 11SEK a few y ago until today's 6,94 against
the US$. So what's used in the country is paid from the country itself.

With all the growth of the USA, it's still going further and further
into debt. I never quite figured that one out.
--
---
DFM - http://www.deepfriedmars.com
---
--

"Gregory Morrow" wrote in message
hlink.net...

Lennart Petersen wrote:

"PJ O'Donovan" skrev i meddelandet
oups.com...
http://www.brusselsjournal.com/node/2027

Swedish Welfa Some Find It More Rewarding Not to Work
From the desk of The Brussels Journal on Wed, 2007-04-04 12:35

Could be possibly interesting for Mr O`Donovan to know about the Swedish
economy. There's a plus in the trade balance against the outside at
an
amount of around 170billion SEK/year. There's a plus in the government
finances at the amount of 64 billion SEK/y . The currency have gained
against the USD from around 11SEK a few y ago until today's 6,94
against
the US$. So what's used in the country is paid from the country
itself.



Besides which unemployment is low, standard of living high, and the
economy
is generally booming. Sweden has a large number of big top - class
companies. A real success story as compared to the world's most powerful
Third World country (the USA)...Sweden could teach the world some lessons
on
how to run a successful country. They've managed to handle well problems
that other sclerotic European countries (France, Germany...) have deemed
"intractable...

IIRC Sweden is home to Europe's richest person (IIRC the guy that owns H &
M)...which proves that both private wealth and state enterprises can exist
well side - by - side... :-)

As for Peej's "Brussels Journal", it is hardly a news source, just
apparently the natterings of some old right - wing bloggers. As a "news"
source it's risible at best...

--
Best
Greg


Ingvar Kamprad, Europe's richest person and the founder of Ikea is a Swedish
citizen, but has lived in Switzerland since 1976. He isn't dumb enough to
live in Sweden and pay for the social welfare state with his money.

And how is Sweden any better run than Denmark or Norway?

"Deeply Filled Mortician" wrote
in message ...

With all the growth of the USA, it's still going further and further
into debt. I never quite figured that one out.

A vast and expensive military fighting expensive wars far from home...

--
William Black


I've seen things you people wouldn't believe.
Barbeques on fire by the chalets past the castle headland
I watched the gift shops glitter in the darkness off the Newborough gate
All these moments will be lost in time, like icecream on the beach
Time for tea.

"Gregory Morrow" wrote in message
hlink.net...

Lennart Petersen wrote:

"PJ O'Donovan" skrev i meddelandet
oups.com...
http://www.brusselsjournal.com/node/2027

Swedish Welfa Some Find It More Rewarding Not to Work
From the desk of The Brussels Journal on Wed, 2007-04-04 12:35

Could be possibly interesting for Mr O`Donovan to know about the Swedish
economy. There's a plus in the trade balance against the outside at an
amount of around 170billion SEK/year. There's a plus in the government
finances at the amount of 64 billion SEK/y . The currency have gained
against the USD from around 11SEK a few y ago until today's 6,94 against
the US$. So what's used in the country is paid from the country
itself.



Besides which unemployment is low, standard of living high, and the
economy
is generally booming. Sweden has a large number of big top - class
companies. A real success story as compared to the world's most powerful
Third World country (the USA)...Sweden could teach the world some lessons
on
how to run a successful country. They've managed to handle well problems
that other sclerotic European countries (France, Germany...) have deemed
"intractable...

IIRC Sweden is home to Europe's richest person (IIRC the guy that owns H &
M)...which proves that both private wealth and state enterprises can exist
well side - by - side... :-)

I fail to see how the fact that Europe's most successful
businessman happens to have been born in Sweden
proves anything at all about the rest of the econony in
that country (though it might say something about its
education system).

And as someone else has said, with wealth tax to
pay, he'd have to be mad to remain living in Sweden
(which he doesn't).

tim

"tim....." skrev i meddelandet
...

"Gregory Morrow" wrote in message
hlink.net...

Lennart Petersen wrote:

"PJ O'Donovan" skrev i meddelandet
oups.com...
http://www.brusselsjournal.com/node/2027

Swedish Welfa Some Find It More Rewarding Not to Work
From the desk of The Brussels Journal on Wed, 2007-04-04 12:35

Could be possibly interesting for Mr O`Donovan to know about the Swedish
economy. There's a plus in the trade balance against the outside at
an
amount of around 170billion SEK/year. There's a plus in the government
finances at the amount of 64 billion SEK/y . The currency have gained
against the USD from around 11SEK a few y ago until today's 6,94
against
the US$. So what's used in the country is paid from the country
itself.



Besides which unemployment is low, standard of living high, and the
economy
is generally booming. Sweden has a large number of big top - class
companies. A real success story as compared to the world's most powerful
Third World country (the USA)...Sweden could teach the world some lessons
on
how to run a successful country. They've managed to handle well problems
that other sclerotic European countries (France, Germany...) have deemed
"intractable...

IIRC Sweden is home to Europe's richest person (IIRC the guy that owns H
&
M)...which proves that both private wealth and state enterprises can
exist
well side - by - side... :-)

I fail to see how the fact that Europe's most successful
businessman happens to have been born in Sweden
proves anything at all about the rest of the econony in
that country (though it might say something about its
education system).

And as someone else has said, with wealth tax to
pay, he'd have to be mad to remain living in Sweden
(which he doesn't).
tim

Wealth tax is now abolished...

"catalpa" skrev i meddelandet
news:97mRh.7222$jZ3.5815@trnddc06...

"Gregory Morrow" wrote in message
hlink.net...

Lennart Petersen wrote:

"PJ O'Donovan" skrev i meddelandet
oups.com...
http://www.brusselsjournal.com/node/2027

Swedish Welfa Some Find It More Rewarding Not to Work
From the desk of The Brussels Journal on Wed, 2007-04-04 12:35

Could be possibly interesting for Mr O`Donovan to know about the
Swedish
economy. There's a plus in the trade balance against the outside at
an
amount of around 170billion SEK/year. There's a plus in the
government
finances at the amount of 64 billion SEK/y . The currency have gained
against the USD from around 11SEK a few y ago until today's 6,94
against
the US$. So what's used in the country is paid from the country
itself.



Besides which unemployment is low, standard of living high, and the
economy
is generally booming. Sweden has a large number of big top - class
companies. A real success story as compared to the world's most powerful
Third World country (the USA)...Sweden could teach the world some lessons
on
how to run a successful country. They've managed to handle well problems
that other sclerotic European countries (France, Germany...) have deemed
"intractable...

IIRC Sweden is home to Europe's richest person (IIRC the guy that owns H
&
M)...which proves that both private wealth and state enterprises can
exist
well side - by - side... :-)

As for Peej's "Brussels Journal", it is hardly a news source, just
apparently the natterings of some old right - wing bloggers. As a "news"
source it's risible at best...

--
Best
Greg


Ingvar Kamprad, Europe's richest person and the founder of Ikea is a
Swedish
citizen, but has lived in Switzerland since 1976. He isn't dumb enough to
live in Sweden and pay for the social welfare state with his money.

And how is Sweden any better run than Denmark or Norway?

Why must it be better run ? And who compared with Denmark,Norway ? Or
compared at all ? All I said was that trade balance with the outside is
excellent, so is also governments finances and so are also my private
savings.
I can afford to travel anywhere in the world without problem and still have
a good life so what's the problem , if there's a problem ?

"Lennart Petersen" wrote in message
...


"tim....." skrev i meddelandet
...

"Gregory Morrow" wrote in message
hlink.net...

Lennart Petersen wrote:

"PJ O'Donovan" skrev i meddelandet
oups.com...
http://www.brusselsjournal.com/node/2027

Swedish Welfa Some Find It More Rewarding Not to Work
From the desk of The Brussels Journal on Wed, 2007-04-04 12:35

Could be possibly interesting for Mr O`Donovan to know about the
Swedish
economy. There's a plus in the trade balance against the outside at
an
amount of around 170billion SEK/year. There's a plus in the
government
finances at the amount of 64 billion SEK/y . The currency have gained
against the USD from around 11SEK a few y ago until today's 6,94
against
the US$. So what's used in the country is paid from the country
itself.



Besides which unemployment is low, standard of living high, and the
economy
is generally booming. Sweden has a large number of big top - class
companies. A real success story as compared to the world's most powerful
Third World country (the USA)...Sweden could teach the world some
lessons on
how to run a successful country. They've managed to handle well
problems
that other sclerotic European countries (France, Germany...) have deemed
"intractable...

IIRC Sweden is home to Europe's richest person (IIRC the guy that owns H
&
M)...which proves that both private wealth and state enterprises can
exist
well side - by - side... :-)

I fail to see how the fact that Europe's most successful
businessman happens to have been born in Sweden
proves anything at all about the rest of the econony in
that country (though it might say something about its
education system).

And as someone else has said, with wealth tax to
pay, he'd have to be mad to remain living in Sweden
(which he doesn't).
tim

Wealth tax is now abolished...

damn, that was one of the reasons why I left.

You mean that it is safe to go back now!

tim