Swedish households have had a tough few years with rising prices for food, energy and housing. From a political perspective, this has been compensated for with, among other things, two electricity subsidies and temporary reductions in both food VAT and fuel taxes.
As the election approaches, it is clear that parties from left to right will continue to shower money on households. But the economy has turned around and many are already better off.
"In general, things are better now than they were a couple of years ago. We see small shifts every year," says Madelén Falkenhäll, economist for financial health at Swedbank.
Families with children have money
Even though households have generally gotten better, she says there are still groups that are having a tough time.
These are single parents, unemployed people and those with slightly lower incomes. Therefore, the question is whether it is better to have more targeted supplements than more general ones. The general ones can have quite large costs, but not much effect, she says.
She highlights child benefit as an example, where parties from both blocs are promising increases.
Since so many households have money to spare, including families with children in general, it may not be quite as accurate but perhaps more of an election proposal.
As the economy has turned upward again and household purchasing power has recovered, SEB's senior economist Robert Bergqvist has also warned that the election promises could even drive up inflation.
Economists John Hassler and Lars Calmfors have also been critical of politicians' budget promises.
It has become a competition for different types of candy that I honestly think voters are tired of, economist John Hassler recently told TT.
“Zero-sum game”
Calmfors also said that, in a situation where the state is borrowing large sums to finance defense and support Ukraine, it would be better to discuss how it should be financed than to promise tax cuts to private individuals.
The M leader, Prime Minister Ulf Kristersson, therefore emphasized when his party recently promised free preschool that it was not about a measure to boost the economy but rather about "integration and the work line."
Madelén Falkenhäll notes that the parties are trying to outdo each other with various election promises, but that far from everything will come to fruition because it will be negotiated after the election.
"There is a downside to all the promises, and that is that they also have to be financed in different ways. Then it might still be a zero-sum game if you have to pay for it in a different way," she says.
