Black Advent 2023

Black Advent

What led to the Black Advent of 2023, where workplace accident after workplace accident occurred and where more and more people died? These fatalities occurred in construction sites, where it is known that it is difficult to control labour conditions.

As early as the 1990s, with reforms such as EU membership, neoliberalism sought to attack labour wages through the free movement of capital and labour. The idea of restricting labour to reduce the money supply in society and thus curb inflation emerged in the 1970s during the oil crisis.

Myths surrounding the oil crisis

Oil is the energy that primarily fuelled society's production. Oil became more expensive partly because of Israel's war at the time, but largely because of price increases by oil-producing countries as a result of the US dollar becoming the paper currency of the world. This led to stagflation as unemployment rose while inflation did the same. The economist John Maynard Keynes, who was the international propagator of a kind of theory of welfare capitalism, had said that stagflation was impossible. The bourgeoisie used this to launch an attack on low- and middle-income earners. In the 1970s, bourgeoisies around the world began to cut back on public spending. Economist Milton Friedman spoke of the danger of an excessive money supply and of the state trying to combat natural unemployment, which would be at a certain level. If the state violated this, there could be inflation. The capitalist philosopher Ayn Rand said that the economy is driven by greed. If you limit the capitalists' exploitation of the people and the freedom of the individual, countries will sink into poverty and low productivity. The economist Sven Grassman revealed in the 1970s that the bourgeois government had misinformed about the size of the national debt and the imbalance in foreign trade. Another theory is that the 1970s companies had become so effective at massproduction that their profits were too low for reinvestments. They then had to turn to the financial market för economic resources. These wanted to worsen conditions for production to raise the prices and the profits.

These lies affected Sweden's ability to pursue industrial, equality and labour market policies. Before the move to a floating exchange rate in 1992, Sweden had less freedom to create money to finance public spending, as this could affect the exchange rate and the stability of financial markets. The move to floating exchange rates gave Sweden greater flexibility in monetary policy and in managing the domestic economy.

So the disinformation that Sweden was doing worse in foreign trade in the 1970s and 1980s than we were gave the government an excuse to cut back on industrial and labour market policies.

Those who won manufacturing went into deficit

We stopped supporting our shipyards and the textile, apparel, and leather industry, Instead, this former source of Swedish wealth ended up in countries of the global South. These were at the beginning of their industrialisation. Although we in the West claimed that we could not allow deficits or inflation to support our industry, South Korea, for example, did just that according to researcher Alice Amsden. Instead, workers would work harder and cheaper.

Sweden and the West underestimated the importance of domestic industrial production, according to Sven Grassman in the book "Det plundrade folkhemmet". Focusing on domestic production and consumption gives manufacturing countries greater control over their wealth and the ability to satisfy the needs of their population with their own resources.

At the same time, a negative discussion about sovereign debt began. Government debt is really just the government taking control of money production instead of private banks. When private banks control money production, it can lead to reduced output and financial crises when people can no longer borrow money. Austerity policies, or 'saving in the barns' as they are known, resurrected in the 1970s, favoured the richest and widened gaps at every economic crisis.

Devaluations increased inflation

Devaluations during the oil crisis led to higher inflation. The aim was to strengthen competitiveness and gain export market shares. But Swedish companies did not lower their prices of goods in foreign currencies. This resulted in increased profits for shareholders. At the same time, monthly incomes for the majority of the population fell.

The pursuit of lower government debt since the 1970s may have contributed to Swedish industry falling behind in terms of investment. Industry blamed high taxes and wages.

The Social Democrats, with the support of the Left Party, began to worsen conditions for low- and middle-income earners in 1982. Tax increases for low-income earners reduced consumption and thus production and tax revenues. Unemployment rose temporarily in the 1980s on the theory that this could lower inflation.

An important part of the austerity policy was the Riksdag's decision to make it easier for owners to invest capital abroad. This led to Swedish workers competing with low-wage labour in the global South. This was a major squeeze on working conditions and welfare in Sweden

Economic boom boosted with improved labour conditions

But in the late 1980s, despite the decisions of the Swedish parliamentary parties, the economy boomed with record low unemployment. A fear of inflation arose.

Several radical workplace reforms took place across Sweden to improve workers' conditions, including at Volvo Cars, according to social journalist Mikael Nyberg's book "Kapitalets automatik"

In the late 1980s, therefore, a parliamentary coalition created a policy to break the boom. Workers had to work harder and more cost-effectively. The result was mass unemployment, mass bankruptcies, increased lending, 500% interest rates, and eventually rising share prices and house prices in the 1990s. But the stock market and property boom had started with, among other things, a property crash. It left many people in debt for life.

There were external factors to the 1990s crisis. One was the fall of the Soviet Union. This increased the amount of very cheap labour in the immediate vicinity of Sweden and Europe enormously. Then there were financial speculations against the Swedish krona. But these were resolved when we allowed our currency to float freely.

He who is in debt is not free

The Social Democrat Göran Persson is therefore said to have felt compelled to seek capital abroad, saying "he who is in debt is not free". But the story of Göran Persson's actions during the debt crisis in the 1990s and the need for budget consolidation is not correct. This is what researchers Niklas Altermark, Max Jerneck and Elisabeth Lindberg write in Aftonbladet 2023-06-21.

The interest rate spiral and the economic crisis of 1994-1995 were initially caused by the Federal Reserve's interest rate increase, not by Sweden's national debt. Moreover, the indebtedness of Swedish citizens did not increase, but government debt was matched by a reduction in private debt. The idea of expansionary austerity, cutting government spending to gain market confidence, has proven to be wrong. When interest rates began to fall in the late 1990s, this was also due to international changes.

Permanent mass unemployment for tougher labour conditions

Mass unemployment would be made permanent via restrictions on government deficits such as Sweden's own fiscal framework and the Maastricht Treaty. Employers would not have to compete with good conditions for labour again. Public sector cuts also worsened many graduate jobs. Then Reinfeldt brought in more restrictions on welfare to cut wages and create a new underclass.

A country in crisis during a black advent

Now we have a job matching shortage because the bourgeois want less competition for the winners for career jobs and more struggle for everyone else for the low-paid jobs. Foreign workers are taking the worst jobs in Sweden partly to help some privileged Swedish workers, but mainly to increase competition. In 2023, as many as 62 people died in work-related accidents in Sweden. Every year, 30-50 people usually do this in our country. 700 die from work stress every year. On the other hand, work-related illnesses still account for the premature death of around 3 000 people each year. Many people who kill themselves have previously been bullied at their workplaces. (Swedish Work Environment Authority) Statistics from the Swedish Social Insurance Agency show that in December 2022, 42,591 people were on sick leave for at least two weeks due to stress. Twelve years ago, in the early 2010s, the corresponding figure was just over 9,310 people. ( TT ) Austerity did not increase productivity.

Right-wing populism and gang crime were given to Sweden as a plaster on the wounds. And by Advent 2023, people were dying day after day in a short space of time in workplace accidents in Sweden.