The government-financed approach requires substantial revenue from taxation. However, if taxation is high, it will be detrimental to the Swedish economy. The high income taxes could be a disincentive for people to work hard, excel and gain higher pay, since the higher pay would mean higher taxes. The economy would thus be unable to function smoothly as people choose to be less productive. The high VAT can also result in a worsening standard of living, as many goods and services become expensive. It could result in less tourists visiting Sweden, which means a less performing tourism industry, and lesser revenue to the government