Wednesday, September 3, 2025

Polaris of Enlightenment

Parents in Sweden dip into their children’s savings to make ends meet

Welfare collapse

Published 29 July 2024
– By Editorial Staff
Nearly one in three low-income households have withdrawn their children's savings without being able to pay them back.
2 minute read

According to a survey by Verian and Länsförsäkringar, an increasing number of Swedish parents say they have withdrawn their children’s savings – without being able to pay them back.

Last year, 4% of parents felt forced to use their children’s money to get by financially – but this year the figure has risen to 10%.

– This is a significant increase and the trend reflects the fact that many families with children are finding it difficult to make ends meet, says Stefan Westerberg, personal economist at Länsförsäkringar, in a press release.

Most common is it among single parents and low-income households to ‘borrow’ money from their children without being able to pay it back later. 18% of single parents and 28% of low-income households say they have done this in the past year.

“Try to pay the money back”

– Many people are still in a tight financial situation with high interest rates and high spending on food and other purchases. It’s understandable that more money is going to everyday expenses and less to savings for children. But try to put the money back in if you can when you take it out of the children’s savings, and try to reduce the amount of savings rather than eliminate it altogether. It is easy to forget to replenish monthly savings when the economy improves, continues Stefan Westerberg.

The survey was conducted online via Sifopanel between January 31 and February 7, 2024. 1000 people with one or more children under the age of 18 living at home answered the questions.

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Swedish preschool chain extracts millions – children get less butter

Welfare collapse

Published yesterday 11:37
– By Editorial Staff
Tax funds finance preschool – butter is portioned out in the smallest possible amounts.
2 minute read

The Swedish preschool company Hagvidson has extracted millions in profits in recent years. Meanwhile, the company is rationing butter and sandwich toppings for preschool children.

Hagvidson currently owns over 21 preschools across Sweden, including facilities in Falun, Stockholm, and Uppsala. The preschool company has grown significantly in recent years and has purchased ten new preschools during this period. During the same timeframe, the owners – three men from the Örebro region in central Sweden – have extracted €6 million in dividend payments.

The men have taken director fees and salaries totaling around €900,000, which is primarily based on tax funds and municipal preschool funding.

Despite the million-euro profits, the company is strict about imposing restrictions on the children, according to an investigation by the Schibsted newspaper Aftonbladet. The restrictions primarily concern children eating too much sandwich toppings, but also include limits on paper towel usage for both staff and children.

We need to think about how much butter we put on the sandwiches and the amount of toppings – more is being used than usual right now. If we want to keep using Bregott (a popular Swedish butter-margarine blend), we need to be mindful of this”, states a protocol sent to employees, which the newspaper obtained.

Half a cheese slice

One solution from the preschool company is for adults at the table to portion out the butter to ensure children don’t take too much from the package themselves. Furthermore, only one topping per sandwich is allowed, something that employees at one of the preschools also confirm.

The children get half a cheese slice or half a thin slice of turkey on their sandwich and eat a maximum of two slices of bread – one soft and one hard per day – yet this still seems to be too much, the educator tells Aftonbladet.

Hagvidson’s CEO Michael Enghag declined an interview regarding the children’s restrictions on sandwich toppings, citing the company’s “communication policy”.

Finland: Should children be forced to take care of their aging parents?

Welfare collapse

Published 20 August 2025
– By Editorial Staff
Critics note that many elderly people have no family or close relatives who can help them.
4 minute read

An explosive debate has erupted about the future of elderly care in Finland, where pension company CEO Risto Murto argues that society will soon no longer be able to afford caring for elderly citizens – and that responsibility must therefore be transferred to families.

Several politicians reject the proposal, however, arguing that it is the welfare state’s duty to care for its aging population in a dignified manner.

With the number of elderly Finns expected to increase from 600,000 to 900,000 people in just fifteen years, the country faces a demographic time bomb. Now Risto Murto, CEO of the occupational pension company Varma, has caused major controversy by declaring that Finland will not be able to afford today’s public elderly care in the future.

His solution? That adult children instead take over responsibility for their aging parents.

The statement has prompted several Finnish politicians to protest, and members of parliament in the Social Affairs and Health Committee clearly oppose the proposal, reports Svenska Yle.

— We shouldn’t go in that direction, says Henrik Wickström from the Swedish People’s Party (a Finnish political party representing the Swedish-speaking minority) firmly.

— We must find other solutions, argues Maaret Castrén from the National Coalition Party.

Number of elderly increasing rapidly

The demographic development that worries Risto Murto is brutal in its simplicity: Fewer and fewer children are being born while the number of elderly is increasing rapidly. From today’s just over 600,000 people over 75 years old, the figure is calculated to rise to approximately 900,000 in fifteen years.

But for MP Henrik Wickström, elderly care is non-negotiable.

— The major challenge is the shortage of nursing homes. We haven’t managed to develop services at the pace that the population is aging, says Wickström, pointing out that elderly care is a fundamental responsibility of the welfare society.

Maaret Castrén is even sharper in her criticism:

— Future elderly care cannot depend on families taking care of their elderly. That cannot be something we work toward.

“Not all elderly have children”

The Center Party’s Hanna-Leena Mattila acknowledges that the statement is understandable given the state’s strained finances, but points to fundamental problems with the proposal.

— Not all elderly have children, so how can we guarantee that everyone is treated equally if responsibility is placed on the family? she asks rhetorically.

Research doctor Sarah Åkerman at Åbo Akademi University (a Finnish university) warns of the consequences of romanticizing the image of family caregiving.

— It’s often demanding and involves much more than socializing over a cup of coffee, says Åkerman.

She also points out that relatives already carry a heavy burden in Finland, despite generous elderly care.

— Relatives already do a lot, and it’s not obvious that adult children can take on even more responsibility.

Critics point to several serious consequences if family responsibility were to increase. Many Finns live alone and lack children. Those who have children of working age would be forced to reduce their working hours, threatening employment rates.

The risk of increased inequality is also said to be great. Some can afford to buy private help, while others are forced to sacrifice their careers.

— When my mother became ill this spring, my retired sister could help the most. The rest of us in the family are still working and couldn’t help as much, relates Maaret Castrén.

Sarah Åkerman emphasizes the problem further:

— Being someone’s child doesn’t automatically make you a caregiver.

It becomes particularly difficult when dealing with dementia or other complicated care that requires education and professional competence that children typically lack.

“Heartbreaking when elderly feel like a burden”

Despite the resistance, politicians acknowledge that something must be done. If the state’s economy continues to deteriorate, the model where families take greater responsibility could become reality, according to Risto Murto.

But alternative solutions exist. Maaret Castrén highlights community housing and home healthcare as cost-effective models. Henrik Wickström places his hope in digital technology and preventive measures. Hanna-Leena Mattila proposes a form of “elderly care leave”, similar to parental leave, for those who need to care for an aging parent.

But for Mattila, the issue is about more than economics. She tells of her meetings with elderly people who are worried that society sees them as a burden.

— It’s heartbreaking when elderly feel like a burden to society. We as decision-makers in social and healthcare have much to work on so that elderly care is sustainable and everyone can age safely in the future. The only solution cannot be to place more responsibility on adult children, says Hanna-Leena Mattila.

Watchdog: Swedish food prices higher than justified

Welfare collapse

Published 29 June 2025
– By Editorial Staff
Between 2021-2023, food prices in Sweden increased by 28 percent - an inflationary spiral unprecedented in modern Swedish history.
2 minute read

Between 2021 and 2023, food prices in Sweden rose by over 28 percent – a price development not seen in decades. Now, the Swedish Competition Authority (Konkurrensverket) has released a report showing that price increases on several basic food items in stores have exceeded what can be explained by increased costs in the supply chain.

The authority points to lack of competition, particularly in the grocery retail sector, as a crucial factor behind the high prices.

The Competition Authority’s report – a follow-up to a previous analysis from 2024 – shows that grocery retail, food industry, and its wholesalers have maintained stable profitability over the past 15 years – even during the period when food prices rose sharply.

According to the authority, this means that price increases in stores cannot be explained solely by increased costs, but that retailers in many cases have raised prices more than cost developments would justify.

Our analysis shows that profitability in the industry has remained stable for a long time, even during the years when prices rose sharply. This reinforces our previous assessment that competition in parts of the food supply chain is insufficient, says Director General Marie Östman.

Competition deficiencies in focus

The Swedish Competition Authority concludes that high market concentration, barriers to entry for new players, and restrictions in trade agreements contribute to keeping prices high.

ICA, Sweden’s largest grocery retailer with a market share of around 50 percent, is being specifically investigated to determine if the company’s actions may have limited competition.

Well-functioning competition drives down prices and improves efficiency. The overall picture from our analyses shows that there is room for improvement, particularly in the retail sector, which ultimately can benefit consumers and moderate store prices, says Marie Östman.

Recent years’ soaring food price increases have had a noticeable negative effect on many households. Photo: Daria Obymaha/Pexels

The unjustified price increases affect household economies, especially for low-income earners and pensioners where food costs constitute a large part of their budget.

Several basic goods such as butter, bread, cheese, and potatoes have seen particularly large price increases in stores, exceeding cost increases from suppliers.

Food prices have repeatedly sparked debate in the Riksdag , and among consumer organizations demanding stricter regulations to counter market power and promote competition.

The Swedish Competition Authority continues its investigation of the grocery retail sector and intends to propose measures to increase competition and improve market functionality.

Thousands rally in London to oppose welfare cuts

Welfare collapse

Published 9 June 2025
– By Editorial Staff
2 minute read

Thousands of people demonstrated in London on Saturday, June 7, against the Labour government’s decision to cut welfare spending while increasing defense spending. The protest challenges the British government’s economic priorities.

The demonstration was organized by the People’s Assembly and the Stop the War Coalition under the slogan “Welfare Not Warfare” and stretched from Portland Place to Whitehall, reports The Independent.

The protests criticize Prime Minister Keir Starmer’s decision to increase defense spending to 2.5 percent of GDP by 2027–2028, with a target of 3 percent in the next term, according to the new Strategic Defense Review.

At the same time, the government has proposed removing the winter fuel allowance, maintaining the two-child limit for benefits, and cutting support for people with disabilities.

The organizers describe these decisions as political rather than necessary economic choices.

Healthcare, housing, and education

Martin Cavanagh, president of the Public and Commercial Services Union, called in his speech for resources to be redirected to healthcare, housing, and education.

The demonstration was lined with union flags and placards bearing slogans such as “Tax the Rich”, “No to Austerity 2.0”, and “Nurses not nukes”.

Angela Grant from the DWP group emphasized that many people are suffering from hunger and inadequate healthcare, while the government is increasing military spending.

According to reports, support for the demonstration came from large parts of the UK, with buses bringing activists to London.

The Labour government: Increased security threat

The government justifies its priorities with an increased security threat from Russia, citing, among other things, the planned military aid to Ukraine, which includes large quantities of drones. Critics, including several trade unions, argue that welfare is being sacrificed for military ambitions.

The protest followed earlier demonstrations since Keir Starmer took office as prime minister, and discontent has grown after budget proposals and adjustments that protesters say will worsen welfare for ordinary people.

The protesters ended with a clear demand: the government must reconsider its priorities and provide more support for social needs.

While Labour emphasizes national defense preparedness as a priority, concerns about the future of welfare are growing – which the protests clearly signal.

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