Rent seeking

Welfare fraud

Where there is lots of money, there are fortune-hunters. Swedish welfare systems are naively organised. Poor coordination between different government agencies and a lack of checks have meant that a large proportion of our shared tax money, which ought to be going to people in need, has ended up in the wrong hands in recent years.

 

No-one knows exactly how much money is leaching out of the welfare system. An inquiry carried out in Sweden in December 2019 estimates that about SEK 18 billion is paid out incorrectly every year, around half of which is believed to be due to fraud. But there are also huge amounts we don’t know about. It would be interesting to study in more detail how much of this money is going to criminal networks.

 

Generous benefit systems lower the incentive to work and risk corrupting society.

 

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