The idea of “People’s home” - the cornerstone of the Swedish model

Albin Hansson, 1932, the first Socialist prime minister, coined the metaphor of “People’s home” (Folkhemmet) 1928 in a speech before the Swedish Parliament: “In the good home is equality, cooperation, support readiness. Our whole society would mean that all social and economic barriers are down, which led to a breakdown of our people and lead to a privileged Zuruckgesetzte in Herrschende and addicts, in rich and poor, and Ausgeplunderte looters. “[3] The objective of the labor movement is a transformation of Swedish society into a welfare society into a “national home” by the wage policy, taxation and the implementation of an industrial democracy, social justice restrict. Main players are the trade union movement and its wage policy, the government and employers’ associations, with interaction between the government and social partners and between the social partners. The social partners negotiate not only to wage policy, but also discuss other issues. 1938, the Saltsjobadsabkommen rules for such negotiations such as the regulation of Zwisten, limiting conflicts, affecting the overall economy and negatively impact the regulation of collective redundancies between the partners and the government agreed. Consequence of this agreement was a great autonomy and possibilities for action without government interference for the social partners, including from the government side was intended. In order to preserve their independence, had the parties in their collective wage policy responsibly with regard to the stability of the Swedish labour market strengthened. End of the thirties were also state subsidies for health insurance increased, the financial resources of the unemployment insurance expanded and the expanded job placement. The government introduced an income primary pension and employment protection for pregnant women, maternity insurance and pension mothers have been improved. After the Second World War, of the Social Democrats designed welfare state in its essential reality. The understanding of the SAP from social policy in this period can be achieved by full solidarity to limit competition and inequality and the orientation to a cyclical economic policies described. During this time won social policy as social investment. Under Prime Minister Per Albin Hansson, and later under Prime Minister Tage Erlander were in the 40s and 50s for the welfare state key reforms, such as the introduction of compulsory health insurance, social assistance and child benefits. The previous voluntary supplementary pension income to einkommensunabhangigen basic pension has become a mandatory addition. Between 1960 and 1981, the benefit rate of 15.9 percent of GDP to 33.5 percent of GDP. This is closely related to that by increasing revenues from social security contributions and the introduction of VAT in 1959 the financial resources of the social security system increased. In addition, the governments operated as a bridging strategy during the oil crises from 1972 to 1982 an active labour market policies with a strong expansion of public employment, mainly in areas of welfare, which is increasing spending on social impact. Thanks to these measures survived the two oil crises with Sweden in an international comparison low unemployment rates. They had, however, have negative consequences for the budget and the price stability level, which since 1982 to a more supply-side consolidation policy - but without fundamental change - and the view that the welfare state had reached its limits, resulted. Nevertheless was 1998, the benefit ratio still at 33.3 percent until 2006, it dropped to 30.6 percent, was slightly below the German social welfare rate.

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