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Unfortunately (as a Norwegian), that is never going to happen. Norway's is a success story, but there is a darker side to the oil fund. This money will be spent
by marvin 7y ago
Unfortunately (as a Norwegian), that is never going to happen. Norway's is a success story, but there is a darker side to the oil fund. This money will be spent on something. Our public sector has a tendency to grow without questioning from any political group, such that the total tax level stays the same, regardless of any incomes from the oil fund.
Currently, 1/3 of working-age Norwegians work in the public sector. 1/3 works in the private sector, and the final third are either unemployed or qualify for government benefits. (Meaning: Retired, long-term disabled, in full-time parental leave and so on). That this seems sustainable at all is very strange. We might as well go straight to a large-scale basic income experiment, because we almost have a basic income system in place already. In my opinion, this would be a more honest way of providing government benefits than the system we already have.
Currently, 3-4% of the oil fund is liquidated each year to pay for the deficit in the national budget, while total taxation has in fact _increased_ under the current Right government.
To my eyes, Norway has an exotic form of Dutch Disease in the form of our government spending, which is prevented from becoming a catastrophe by the oil fund. It will be interesting to see what the future brings, but it's not all roses.
- dkural 7y agoI agree with your general argument - one thing to nitpick. Full time parental leave is not a bad thing in creating social wealth. Domestic labor is often unappreciated - until one has to do it or pay for it. I wouldn't lump those in with what you clearly consider "unproductive" use of human capital and labor. You get the benefit of a meal or a clean house, and if you pay for a maid and a cook, it also shows up on the national statistics for GDP.
- marvin 7y agoOh, I’m not really opposed to a strong social safety net at all, if it came across like that. In fact, a basic income system would be very interesting to try out. Everything doesn’t have to be optimized for productivity; it’s quality of life and individual choice that matters. I’m just opposed to some aspects of the sustainability and wisdom of the current Norwegian system, as well as slightly disillusioned regarding the lack of quality debate around this in the country :)