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 social democratic economy, controversies with Minister for Social Affairs Gustav Möller (who would have preferred graduated taxation to have been higher) prevented both from being elected party chairman and Prime Minister at the death of Hansson.