Evening star., 1948-09-19

other foreign exchange, that trade
tically frightened still more, that
increased rationing and controls
threaten his standard Of living.
Politics Hide Plight
Political expediency is preventing
the Swedes from knowing the fun
facts about the dangerous state OF
the Swedish economy and a none
tary position that has fallen to a
basic minimum in working balance.
The reason for this political ex-
pediency is simple enough:
A general election is being held
today for the 230 seats in the lower
chamber of the Riksoag, the parlsa-
ment.
Naturally, the Social Democrats,
in control of the government, are
not exposing any more Of the
country's economic plight than they
can possibly help.
Instead, the Social Democrats
talk brightly about the many bene-
fits they have given the people
and these benefits are most impress
sive.
But they brush aside, ignore, or
rationalize, the mistakes in juds-
ment and tactics which have led
Sweden into its present situation
and can get infinitely worse unless
something Is done quickly.
Nor is much of the true picture
being given in the campaign by the
opposition parties - Hoerger, the
conservatives at the far right; Folk
partiet, the liberals; Agrarians. In
the center, and Communists, at the
far left.
I have been shaken to discover
what has happened since lett
Stockholm in 1945 after long war
time residence here.
The city looks much the same.
But actually, after talking with
scores OF old friends of every politi-
cal complexion from left to right.
I feel myself, politically, a stranger.
Economic Cannibalism'
The Sweden I knew has changed
amazingly.
Some of the zest and the sparkle
has gone, for me.
I find my friends worried and
distraught about what lies ahead.
The complacency fostered by an
enviable super-civilization and 1874
years of neutrality has been re-
placed by a tenseness and an un-
easiness never found here before.
1t is not difficult to see why
Sweden has got itself into such a
potentially dangerous plight. But
it must be made clear that part OF
the trouble is the overlap Of . dis
torted international situation.
One key to Sweden's position to-
day lies in what can be called
economic cannibalism."
Putting 1t another way, the lead
ers of the Labor Party (the social
democrats) failed utterly to drain
off the excessive purchasing power
of the Swedes during the postwar
period, particularly in the past two
years.
They permitted the people to 60
on a buying spree, kind Of escapist
release from the inferiority-complex
Illustrations of Sweden's so-called
neutrality.
The Swedes had plenty of money
and they spent it.
Here, in . socialized state that
provides disqualification, insurance
childrens subsidies and freedom
from basic economic worries, there
is little incentive to save money.
Savings Campaign Failed
The answer Is: He doesn't, ~
shown by the failure Of the govern.
ment's recent drive to increase saw
ings accounts.
| Rents remained rigidly controlled
and low. Thus, more money from
the pockets of the wage-earner wa
allowed to circulate.
Interest rates also were kept lov
by q firm labor party policy. Result
More money in free circulation.
In consequence, the postwar pur
chasing power here continued with
out effective controls or serious at
tempts to bring it down to q SAT-
balance.
The average worker, as of today
is earning Is per cent more thai
in 1899. But, on the whole, tn
cost Of living is only $50 points q
compared with q 1899 index Of 10
while overall production has risel
very little.
The disparity is obvious. And s'
are It's consequences.
The excessive buying power GU