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This is why you should study economic history instead of economics.

In the 80ies Sweden had next to no unemployment while featuring very high levels of benefits for unemployment or illness.

In the 90ies Sweden took the low-inflation, high-unemployment route and installed an independent central bank that believes so firmly in the theorem of keeping the unemployment above the non-acceleratng inflation rate of unemployment, that it increases the rent even if it is external factors driving the inflation. And of course this was followed by cutting back on benefits for unemployment or illness. And after that followed the classical moral underclass discourse to explain that the poor has no money beacuse they are lazy.

So in conclusion: Sweden had no unemployment but high benefits, got unemployment, cut back on benefits, blamed the unemployed. And also, do not trust economics professors.

Sweden's finest (and perhaps only) collaborative, leftist e-newspaper Synapze.se

by A swedish kind of death on Wed Oct 8th, 2008 at 10:29:05 AM EST
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