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Norway also has trillions of dollars in its sovereign wealth fund. Like they could all stop working tomorrow and be fine for a couple of years living off their
by marginalia_nu 3y ago
Norway also has trillions of dollars in its sovereign wealth fund. Like they could all stop working tomorrow and be fine for a couple of years living off their national savings account.
- Retric 3y agoThe returns from that sovereign wealth fund are already included in the GDP figures. Yes, having savings is useful but that’s largely offset up the high costs of being so far north.
- dragonwriter 3y ago> The returns from that sovereign wealth fund are already included in the GDP figures. No, they aren’t (except that the production that produces them is, for domestic investments), because investment returns aren’t finished goods and services, and GDP is the aggregate value of finished goods and services produced. Counting investment returns on top of that would be double counting for domestic investment, and counting something completely outside for foreign investments.
- Retric 3y agoSorry, I should have been more clear. By returns I mean the impact on the economy from extracting money from the oil fund which first did in 2016. Essentially the fund had zero impact to their economy before 2016. There’s significant debate around how much money should be taken from the fund to subsidize government services, but simply having money in an account they aren’t accessing doesn’t change the day to day finances.
- marginalia_nu 3y agoBeing the national equivalent of independently wealthy does sort of change the sort of risks you're able to take, even without actually dipping into the fund. I don't think GDP captures this fact at all.
- Retric 3y agoI could see that for large R&D projects or something, but I have trouble seeing how that’s related to the penal system. Recidivism data really lags spending, but you can scale up small scale tests programs.