Investments in welfare often just air - National Economist: "Democratic problem"

- All politicians love this system.

Every year you can present it as a major reform when you give money to the municipalities, when in fact it may just be about maintaining the real value of the state subsidies to the municipalities, says Lars Calmfors.

Lars Calmfors is a professor of national economics and over the years has been one of the most diligent examiners of how well different governments' economic policies work.

In this role, he has irritated both bourgeois and social democratic finance ministers.

"Democratic problem"

One of his points of view is that democracy would work better if the state grants to municipalities and regions were automatically calculated every year, taking into account inflation and other cost increases.

Today, state subsidies are at a fixed level and each new kroner requires an active decision from politicians at national level.

- It is a democratic problem that if you do not make any active decisions, the activities in the municipalities automatically deteriorate, says Lars Calmfors.

Hear about how the contribution should be handled according to the national economist in the video above.