Warning for
unexploded bombs

 
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From ELECTION PROMISES in rosiest-red to the TAX SHOCK, took exactly 50 days. From the actual Election day September 15, 2002, only 17 days. Further, from TAX SHOCK to BUDGET CRISIS took an additional 179 days. The Swedes are now waiting for the Minister of Finance, Ringholm to recognise the FINANCIAL COLLAPSE that Swedish public economy is, slowly and surely, heading for. When this recognition comes, it can be expected to be presented - as with the TAX SHOCK in October 2002 and the BUDGET CRISIS in April 2003 - as an accomplished fact.
    
”The Swedish Model”
is, means DSM’s chief editor Jan Gillberg, a target for - to use a Schumpeter expression - its own self-destructive powers.

 Self-destructive power 1. The people learn to take out as much as possible from the system (known as allowances).

 Self-destructive power 2. The people learn how to pay in the smallest possible amount (known as tax and costs).

 That which from the perspective of the system applies as ”self-destructive powers”, applies from the perspective of citizens as ”strategies for survival”.
     
Together this generates a process, which drives the public economy towards an inexplicable financial collapse.
     
Those who cannot or do not want to see how self-destruction is at the point of grinding down the Swedish welfare state, can have another aha-experience by studying the development in Germany - a country which has to a large extent copied ”The Swedish Model” and then made it even more voluminous. In Germany the development has even gone further downhill than in Sweden.
     
 Mr Ringholm appears to be the blindest of them all. Here one can, by virtue of Ringholm’s position as Minister of Finance, relate to a particularly powerful explosive unexploded bomb.
     
 A problem for Sweden is that the economic policy has for decades obstructed new and growing businesses. Therefore there are only a few fortunate ”heirs” to the once flourishing Industrial Sweden. A bare handful of prosperous businesses, which have managed to defy and/or avoid all sorts of political hurdles are named in the article. They are all family owned and do not have the stock exchange as a financial base and abode: H&M (The Perssons), IKEA (The Kamprads), Stena (The Olssons) and Tetra Laval (The Rausings).
      
It speaks for it self, writes Gillberg, that this is too small a base to generate the financing of the public economy required.  Therefore resources to save Welfare-Sweden must be found elsewhere.
      
This elsewhere can only be where the really big resources accumulate - the resources which are now being ground down in a welfare mill with enormous deductions not just for the production but also and above all in the form of usefulness lacking all discrimination. This usefulness, Gillberg means, has more and more come to be distributed according to the principles of the rights of the clever and the smart at the expense of an ecomonizing of welfare resources,in which all citizens feel responsibility and participation. The law of distribution,which has come to apply even on ”the welfare market” is: ”Who wants to be the sucker?”  This has given rise to a mentality, which is ruining for the whole welfare construction.
      
The welfare can only be saved if we introduce mechanisms for a sound and, with a priority for the individual, an anchored economizing with the resources of the welfare. For this, Jan Gillberg assigns a model built on a ”savings account according to source of income”, where each and everyone through a deposit of salary could build up their own security financing and at the same time decide when and to what extent the built up financing should be claimed. This model is presented in an article previously published in DSM.



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