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Municipalities' weak economy: Hope for the development of technology

2019-11-26T17:26:05.729Z

If the economy today is perceived as weak in the municipalities, there is nothing against what it will look like in the future, despite favorable conditions. "In the next five years, municipalities' revenues will increase by 25 percent, but that is not enough," says Rolf Solli, professor of business economics at the University of Gothenburg's School of Management.



Eight out of ten of the country's municipalities are planning savings in the municipalities' major core activities such as elderly care and school and education.

The reason why the municipalities in the midst of this longest of economic cycles ended up skewed financially is due mainly to two things: the number of young people is increasing, they require schooling, the number of older people is increasing, they require care and care.

- These groups are both big consumers of welfare and they will only increase over the next 20 years, says Rolf Solli.

The newcomers are sometimes mentioned as the cause of the municipalities' increasingly poor economy, is there any truth in that?

- They cost money, but that's not the expensive thing. They have children with them and they will be needed.

Huge recruitment need

In parallel with the municipalities' limiting economy, there is a huge need for recruitment within the welfare professions care, school and care. Forecasts speak of a recruitment need of up to 70,000 a year by doctors, teachers, nurses.

- If we recruit these among the litter 20-year-olds, we would take 70 percent of all 20-year-olds. Remaining to the Police, Volvo and everyone else there would be 30 percent left, says Rolf Solli.

What do you do about this?

- It is difficult to do anything for the development of the population, one must hope for the development of technology, the digitalisation in healthcare and care and thus reduce costs and the number of employees. Robotizing the social service has already started.

Is this enough?

- No, far from it, but you can revise the tax system, remove the income tax - services are expensive - and replace it with consumption tax, for example with a focus on environmental imprints. Be tolerant of technology development, it all depends on your ambition, says Rolf Solli.

Source: svt

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