PLCP 3120 Lecture Notes - Lecture 14: Welfare In Sweden, Market Power, Profit Sharing
13 Dec 2017
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Discussion: swedish welfare state: changing values and a model under scrutiny. Sweden is the us with no south and a much more homogenous population : why centralized wage bargaining, a small open economy - a price taker. If wages increase > increased productivity > increased export prices > decreased market share > decreased profits > increased unemployment: non traded sector does not face this problem. If they increase wages > increase productivity, then traded sector must decrease wages: traded sector works won"t accept decreased wages relative to non-traded > conflict among workers, thus, centralization to control non-traded sector. Industrialization breakdown of families: mothers transmit faith, yet widowhood, orphanages were rising. Intra-group conflict decreased solidarity vs. seculars: looming state control over education - would religion have a place, a common group identity group cohesion, catholic socialism organized charity, de rerum novarum (1891) on capital and labor .
