Dimensions of Swedish Social Insurance System

As of 1932, the Socialists took over government legal action and began to focus on expansion of the kind welfare system, gaining guard from minority parties in the process. Social welfare programs were seen as a means of leveling in keep abreasts; influenced by the economic theories of John Maynard Keynes, the Socialists hence wanted a higher level of state activity and an economy planned by the state. Compromise on some important issues - from defense to social welfare to economic polity - has characterized much of Sweden's history in the 20th century (Stjernquist, 1966).

The Swedish vex, according to Edebalk (2000), emerged because of the unique circumstances of the nation in the commencement exercise decades of the 20th century. At that time, Sweden had the oldest population in the Western universe of discourse and, as a result, the highest expenditures for poor relief. The reporting of personal or family income and the practice of taxation had just been introduced, thus making it assertable to finance a universal pension system by means of compulsory contributions by the individual via a extra earmarked tax.

In 1916, the establishment of the universal pension system in Sweden made possible a system of insurance for work-based injuries (Edebalk, 2000). This include the entire workforce and was then the most modern of its kind. The presence of a pension insurance system and insurance for work-related injuries pointed reveal the need for a general

In 1995, The Economist (Judgment day?, 1996) reported that the Swedish pose was "dying," with unemployment increasing and national economic growth slowing.

The Social Democrats, returned to federal agency in 1995 after a reforming conservative government was jilted by voters, hoped that by raising taxes and cutting the budget deficit from over 11 share of GDP to 5 percent in three years they would be able to exclude drastic reforms of the welfare state model. That model, begun in the 1910s, built in the 1950s and elaborated further in the 1970s, was seen as turn an unaffordable anachronism.

A "cradle-to-grave" social welfare system has thus come to typify the Swedish social welfare state (Vartiainen (1998). Politically, the model cemented for long periods the power of the Social Democrats. It has created political preferences that favor social democracy, since more than one-half of the wage-earners in Sweden work directly or indirectly within the realm of the public economy.

Macroeconomic focal point has had to struggle with reactionary pressures, with the overheating of the late

1980s and the subsequent deflationary shock leading to a sharp increase in unemployment in the 1990s.

Judgment day: Sweden. (1995). The Economist, 334 (7902), 49 - 51.

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