Thriving Norway Provides an Economics Lesson

[Lydia Leftcoast]

...With a quirky contrariness as deeply etched in the national character as the fjords carved into its rugged landscape, Norway has thrived by going its own way. When others splurged, it saved. When others sought to limit the role of government, Norway strengthened its cradle-to-grave welfare state.

And in the midst of the worst global downturn since the Depression, Norway’s economy grew last year by just under 3 percent. The government enjoys a budget surplus of 11 percent and its ledger is entirely free of debt.

---
Norway is a relatively small country with a largely homogeneous population of 4.6 million and the advantages of being a major oil exporter. It counted $68 billion in oil revenue last year as prices soared to record levels. Even though prices have sharply declined, the government is not particularly worried. That is because Norway avoided the usual trap that plagues many energy-rich countries.

Instead of spending its riches lavishly, it passed legislation ensuring that oil revenue went straight into its sovereign wealth fund, state money that is used to make investments around the world. Now its sovereign wealth fund is close to being the largest in the world, despite losing 23 percent last year because of investments that declined...

http://www.nytimes.com/2009/05/14/business/global/14frugal.html?hp

They don't waste all their money on military hardware or sweetheart deals for major political contributors either, I bet.

[stevedeshazer]

1. Those doggone socialists

Thanks for posting this.

I thought this passage was notable:

“The U.S. and the U.K. have no sense of guilt,” said Anders Aslund, an expert on Scandinavia at the Peterson Institute for International Economics in Washington. “But in Norway, there is instead a sense of virtue. If you are given a lot, you have a responsibility.”

Eirik Wekre, an economist who writes thrillers in his spare time, describes Norwegians’ feelings about debt this way: “We cannot spend this money now; it would be stealing from future generations.”

/

Now, isn't that a sensible approach?

[snot]

2. k&r'd

[snot]

3. Norway also has awesome arts programs. One of the most active players in the NYC art scene.

[DCKit]

4. Damn commie bastids!

How dare they not play by the rules of Wall St., Hedge funds, banks, conservatives and other corporatist groups. Don't they know they're hurting

[OswegoAtheist]

5. Norway.

So liberal, Michael Moore left it off his "Sicko" film because it was so unbelievably awesome.

Oswego "We're on a road to Norway" Atheist

[Lydia Leftcoast]

6. Their film industry is really good for such a small country

Don't miss the original Insomnia (police detective sent to "Midnight Sun" area to solve a murder) or Sons (a man tries vigilante tactics on the pedophile who molested him as a child), or The Other Side of Sunday (a young girl growing up in a fundamentalist family), or most recently, The Kautokeino Rebellion (about how the Norwegians treated the Sami people--aka Lapps--in the 19th century).

[LatteLibertine]

7. I have a lot respect for these people

It is sad the land of the free is run by a few greedy soulless people. Last I checked, 10 percent of our population holds 70% of our wealth. Of course I'm sure that's because they deserve it and that 90% of citizens in the United States are lazy or undeserving.

[salguine]

8. .

[Diclotican]

9. Lydia Leftcoast

Lydia Leftcoast

Then We are doing something right then, when we still have a lot of money to spend - and no debt. Even that Norway do have a system many americans maybe would believe to be "communist light" as one I talk to once was thinking about it as...

And in a few days we are also celebrating our 17 of mai day... Or National day.. And the weather is looking quit well for the moment, I hope it Will be a nice sunday, who is warm and good... At least we got rid of the snow...

We have our issues here too, but compared to the US, most politicians seen to be quit honest in Norway.. Maybe because if they do something wrong, in a population of just 4.6 million the truth will go out fast.. And then their political future are blown..

By the way, the building in the picture is from the new Opera house in Oslo, who are one of the most modern opera house in the world;): And this is the starting block for "fjordbyen" who wil be the largerst new rebulding of any parts of Oslo since the early 1900s.. A whole new part of the City wil be build by the sea the next 20 or so year.. The old shipyards wil in many way be goone, and a new parts of town been born..

Diclotican

All I have to say is HEIA NORGE;)

[ShortnFiery]

10. But former General Myer is pulling out his Orwell - endless wars against GLOBAL INSURGENCY.

OMFG! Welcome to perpetual WAR.

We've always been at war with <fill in the blank> a) communism, b) Al Quaeda, c) The Taliban .... OH! The entire decentralized networks which comprise GLOBAL INSURGENCIES. :crazy:

[Joe Chi Minh]

12. Commonism, please.

[Blue_Tires]

11. funny how not supporting a massive military and foreign invasions

allows you to do so much more with your money...

[Vidar]

13. K&R.

[LeftishBrit]

14. I've been there a couple of times, and was most impressed

I called it 'The Land that Thatcherism Forgot'.

[Wednesdays]

15. K&R

:kick:

[knitter4democracy]

16. And they make great yarn.

Dale, Rauma, and Sandnesgarn. I've used yarn from all three companies, and they are all well-made, lovely yarns.

[Lydia Leftcoast]

17. The better to make all those wonderful sweaters!

:-)

[knitter4democracy]

18. And mittens!

I've been on a mitten kick for the last year. Selbu, Latvian, Rovaniemi, you name it.

[FlyByNight]

19. The threat of a good example

It's amazing what can be accomplished when an empire doesn't have to be maintained.

Clearly, Norway must be destroyed.

:sarcasm: