Ernst Wigforss
Encyclopedia
Ernst Johannes Wigforss (24 January 1881–2 January 1977) was a Swedish
politician and linguist
(dialectologist), mostly known as a prominent member of the Social Democratic Workers' Party and Swedish Minister of Finance. Wigforss became one of the main theoreticians in the development of the Swedish Social Democratic movement's revision of Marxism
, from a revolutionary to a reformist organization. He was inspired and stood ideologically close to the ideas of the Fabian Society
and the Guild Socialism
and inspired by people like R. H. Tawney
, L.T. Hobhouse and J. A. Hobson. He made contributions in his early writings about Industrial democracy
and Workers' self-management
.
in Halland
in south-western Sweden, Wigforss studied at Lund University
from 1899, and published writings on political issues in this period. He completed a doctorate
in 1913 with a dissertation on the dialect of south Halland, becoming docent
in Scandinavian languages at the university the same year. He taught at the gymnasium
in Lund (Lunds högre allmänna läroverk) 1911-1914 and as lecturer of German and Swedish at the Latin gymnasium in Gothenburg
from 1914.
in 1924, and after Branting's resignation in January 1925, became a member of Rickard Sandler
's cabinet. He was made temporary Minister of Finance on 24 January 1925 when Fredrik Thorsson fell ill, and succeeded him on 8 May of the same year, following his death. The Sandler cabinet resigned on 7 June 1926.
He was again Minister of Finance in the cabinets of Per Albin Hansson
and Tage Erlander
from 1932 to 1949.
Regarding the currency crisis of 1947, Wigforss became Gunnar Myrdal
's main political opponent. Swedish historians tend to interpret this crisis as Myrdal's political failure, while the historian Orjan Appelqvist argue that it is Wigforss an Axel Gjöres who holds primary responsibility for this political fiasco.
Some say that Wigforss' economic policies were strongly influenced by John Maynard Keynes
, but he may have anticipated Keynes, because he proposed counter-cyclical economic policy before becoming minister of finance in 1932. But it is perhaps most accurate to claim that his main economic influences came from Knut Wicksell
. He inspired younger economists like Gunnar Myrdal
and the Stockholm school, who worked in the same direction as Keynes at the same time. John Kenneth Galbraith
writes in his book A History of Economics: The Past as the Present, 1991, that it "would be more fair to say 'The Swedish Economic Revolution' than the 'Keynesian revolution' in economics, and that Wigforss was first in this transformation of thinking and practice about economy".
In his pamphlet Har vi råd att arbeta? (Can we afford to work?), widely believed to have won the 1932 elections for the Social Democrats, he made fun of the Liberal theory that budget cuts are the proper remedy for economic downturns. Although he is considered the creator of the Swedish high-tax economy, controversies with Minister for Social Affairs Gustav Möller
(who would have preferred taxes to have been even higher) prevented both from being elected party chairman and Prime Minister at the death of Hansson.
movement of the 1950s and contributed to the discontinuation of the Swedish nuclear arms programme in 1962.
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
politician and linguist
Linguistics
Linguistics is the scientific study of human language. Linguistics can be broadly broken into three categories or subfields of study: language form, language meaning, and language in context....
(dialectologist), mostly known as a prominent member of the Social Democratic Workers' Party and Swedish Minister of Finance. Wigforss became one of the main theoreticians in the development of the Swedish Social Democratic movement's revision of Marxism
Marxism
Marxism is an economic and sociopolitical worldview and method of socioeconomic inquiry that centers upon a materialist interpretation of history, a dialectical view of social change, and an analysis and critique of the development of capitalism. Marxism was pioneered in the early to mid 19th...
, from a revolutionary to a reformist organization. He was inspired and stood ideologically close to the ideas of the Fabian Society
Fabian Society
The Fabian Society is a British socialist movement, whose purpose is to advance the principles of democratic socialism via gradualist and reformist, rather than revolutionary, means. It is best known for its initial ground-breaking work beginning late in the 19th century and continuing up to World...
and the Guild Socialism
Guild socialism
Guild socialism is a political movement advocating workers' control of industry through the medium of trade-related guilds. It originated in the United Kingdom and was at its most influential in the first quarter of the 20th century. It was strongly associated with G. D. H...
and inspired by people like R. H. Tawney
R. H. Tawney
Richard Henry Tawney was an English economic historian, social critic, Christian socialist, and an important proponent of adult education....
, L.T. Hobhouse and J. A. Hobson. He made contributions in his early writings about Industrial democracy
Industrial democracy
Industrial democracy is an arrangement which involves workers making decisions, sharing responsibility and authority in the workplace. While in participative management organizational designs workers are listened to and take part in the decision-making process, in organizations employing industrial...
and Workers' self-management
Workers' self-management
Worker self-management is a form of workplace decision-making in which the workers themselves agree on choices instead of an owner or traditional supervisor telling workers what to do, how to do it and where to do it...
.
Early life and education
Born in the town of HalmstadHalmstad
Halmstad is a port, university, industrial and recreational city at the mouth of Nissan in the province of Halland on the Swedish west coast. Halmstad is the seat of Halmstad Municipality and the capital of Halland County...
in Halland
Halland
' is one of the traditional provinces of Sweden , on the western coast of Sweden. It borders Västergötland, Småland, Scania and the sea of Kattegat.-Administration:...
in south-western Sweden, Wigforss studied at Lund University
Lund University
Lund University , located in the city of Lund in the province of Scania, Sweden, is one of northern Europe's most prestigious universities and one of Scandinavia's largest institutions for education and research, frequently ranked among the world's top 100 universities...
from 1899, and published writings on political issues in this period. He completed a doctorate
Doctorate
A doctorate is an academic degree or professional degree that in most countries refers to a class of degrees which qualify the holder to teach in a specific field, A doctorate is an academic degree or professional degree that in most countries refers to a class of degrees which qualify the holder...
in 1913 with a dissertation on the dialect of south Halland, becoming docent
Docent
Docent is a title at some European universities to denote a specific academic appointment within a set structure of academic ranks below professor . Docent is also used at some universities generically for a person who has the right to teach...
in Scandinavian languages at the university the same year. He taught at the gymnasium
Gymnasium (school)
A gymnasium is a type of school providing secondary education in some parts of Europe, comparable to English grammar schools or sixth form colleges and U.S. college preparatory high schools. The word γυμνάσιον was used in Ancient Greece, meaning a locality for both physical and intellectual...
in Lund (Lunds högre allmänna läroverk) 1911-1914 and as lecturer of German and Swedish at the Latin gymnasium in Gothenburg
Gothenburg
Gothenburg is the second-largest city in Sweden and the fifth-largest in the Nordic countries. Situated on the west coast of Sweden, the city proper has a population of 519,399, with 549,839 in the urban area and total of 937,015 inhabitants in the metropolitan area...
from 1914.
Political career
In 1919 Wigforss was elected a social democratic member of the First Chamber of the Swedish Parliament, representing Gothenburg, and he became member of various committees. He was appointed a member of the third cabinet of Hjalmar BrantingHjalmar Branting
was a Swedish politician. He was the leader of the Swedish Social Democratic Party , and Prime Minister during three separate periods . When Branting came to power in 1920, he was the first Social Democratic Prime Minister of Sweden...
in 1924, and after Branting's resignation in January 1925, became a member of Rickard Sandler
Rickard Sandler
Rickard Johannes Sandler was a Swedish Social Democratic politician. He served asMinister without Portfolio in the Swedish government from 10 March 1920 to 30 June 1920, Minister for Finance from 1 July 1920 to 27 October 1920, Minister without Portfolio from 13 October 1921 to 19 April 1923,...
's cabinet. He was made temporary Minister of Finance on 24 January 1925 when Fredrik Thorsson fell ill, and succeeded him on 8 May of the same year, following his death. The Sandler cabinet resigned on 7 June 1926.
He was again Minister of Finance in the cabinets of Per Albin Hansson
Per Albin Hansson
Per Albin Hansson , was a Swedish politician, chairman of the Social Democrats from 1925 and two-time Prime Minister in four governments between 1932 and 1946, governing all that period save for a short-lived crisis in the summer of 1936, which he ended by forming a coalition government with his...
and Tage Erlander
Tage Erlander
was a Swedish politician. He was the leader of the Swedish Social Democratic Party and Prime Minister of Sweden from 1946 to 1969...
from 1932 to 1949.
Regarding the currency crisis of 1947, Wigforss became Gunnar Myrdal
Gunnar Myrdal
Karl Gunnar Myrdal was a Swedish Nobel Laureate economist, sociologist, and politician. In 1974, he received the Nobel Memorial Prize in Economic Sciences with Friedrich Hayek for "their pioneering work in the theory of money and economic fluctuations and for their penetrating analysis of the...
's main political opponent. Swedish historians tend to interpret this crisis as Myrdal's political failure, while the historian Orjan Appelqvist argue that it is Wigforss an Axel Gjöres who holds primary responsibility for this political fiasco.
Some say that Wigforss' economic policies were strongly influenced by John Maynard Keynes
John Maynard Keynes
John Maynard Keynes, Baron Keynes of Tilton, CB FBA , was a British economist whose ideas have profoundly affected the theory and practice of modern macroeconomics, as well as the economic policies of governments...
, but he may have anticipated Keynes, because he proposed counter-cyclical economic policy before becoming minister of finance in 1932. But it is perhaps most accurate to claim that his main economic influences came from Knut Wicksell
Knut Wicksell
Johan Gustaf Knut Wicksell was a leading Swedish economist of the Stockholm school. His economic contributions would influence both the Keynesian and Austrian schools of economic thought....
. He inspired younger economists like Gunnar Myrdal
Gunnar Myrdal
Karl Gunnar Myrdal was a Swedish Nobel Laureate economist, sociologist, and politician. In 1974, he received the Nobel Memorial Prize in Economic Sciences with Friedrich Hayek for "their pioneering work in the theory of money and economic fluctuations and for their penetrating analysis of the...
and the Stockholm school, who worked in the same direction as Keynes at the same time. John Kenneth Galbraith
John Kenneth Galbraith
John Kenneth "Ken" Galbraith , OC was a Canadian-American economist. He was a Keynesian and an institutionalist, a leading proponent of 20th-century American liberalism...
writes in his book A History of Economics: The Past as the Present, 1991, that it "would be more fair to say 'The Swedish Economic Revolution' than the 'Keynesian revolution' in economics, and that Wigforss was first in this transformation of thinking and practice about economy".
In his pamphlet Har vi råd att arbeta? (Can we afford to work?), widely believed to have won the 1932 elections for the Social Democrats, he made fun of the Liberal theory that budget cuts are the proper remedy for economic downturns. Although he is considered the creator of the Swedish high-tax economy, controversies with Minister for Social Affairs Gustav Möller
Gustav Möller
Gustav Möller was a prominent Swedish Social democratic politician, credited as the father of the social security system and the Welfare state, called Folkhemmet...
(who would have preferred taxes to have been even higher) prevented both from being elected party chairman and Prime Minister at the death of Hansson.
Financing Hitler's war effort
Dagens Nyheter, a Swedish newspaper, and Iltalehti, a Finnish tabloid, report that a document has been found in a safe at the Swedish Finance Ministry pertaining to a significant loan Wigforss granted to support Nazi Germany's war effort. No official records were ever made about this loan, but Swedish diplomat Krister Wahlbäck stated that the loan was agreed to and authorised by Wigforss for the specific purpose of assisting Hitler's war effort.Later life
After his resignation, Wigforss continued until his death to write and speak on political issues and was considered one of the most innovative and daring Social Democrat politicians. He supported the anti-nuclearAnti-nuclear
The anti-nuclear movement is a social movement that opposes the use of nuclear technologies. Many direct action groups, environmental groups, and professional organisations have identified themselves with the movement at the local, national, and international level...
movement of the 1950s and contributed to the discontinuation of the Swedish nuclear arms programme in 1962.