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Seems like Swedish economy has significantly better longer term prospects than Norway's (because it is based on replenishable exports, while Norway's on natural

Seems like Swedish economy has significantly better longer term prospects than Norway's (because it is based on replenishable exports, while Norway's on natural resources) However both, and most of the other 'Nordic' economies are export oriented. Meaning that they depend on having negative trade surplus somewhere in the global economy https://www.cia.gov/library/publications/the-world-factbook/rankorder/2187rank.html https://www.cia.gov/library/publications/the-world-factbook/... This is why their model (including taxation and welfare systems) are not applicable to places like US. Actually, trade deficit that cannot be easily (and organically) 'corrected' by sudden jump of exports (typically means natural resources, arms or food) -- is rather catastrophic for economic stability. US was able to maintain its economic stability since late 70s (this when US trade deficit started) -- by continuing making the USD a reserve currency but now without the gold standard. Being the country controlling the value of the world's reserve currency puts US in a place - that simply cannot be compared with any other country in the world.

eli_gottlieb 14y ago
The problem for the United States is that for various political and economic reasons, it is required to serve as the importer/consumer of last resort for the entire world economy. China, for example, would basically collapse into depression if they couldn't export to the USA. But the only way to finance this is for the rest of the world to either continually loan America unlimited amounts of money, or just give America money with no expectation of return. Given the former, America is thus provided with the world's glut of exported goods and consumer goods, at the cost of being deeply, deeply in debt.
geon 14y ago
> Swedish economy has significantly better longer term prospects than Norway's (because it is based on replenishable exports, while Norway's on natural resources) True, but Norway invests heavily in infrastructure (building highways through the fjords is crazy expensive) and technology. They also very carefully manage their oil money so that they will last for generations once the oil is gone. At least they are not building skyscrapers in the desert...

eli_gottlieb 14y ago

The problem for the United States is that for various political and economic reasons, it is required to serve as the importer/consumer of last resort for the entire world economy. China, for example, would basically collapse into depression if they couldn't export to the USA. But the only way to finance this is for the rest of the world to either continually loan America unlimited amounts of money, or just give America money with no expectation of return. Given the former, America is thus provided with the world's glut of exported goods and consumer goods, at the cost of being deeply, deeply in debt.

geon 14y ago

> Swedish economy has significantly better longer term prospects than Norway's (because it is based on replenishable exports, while Norway's on natural resources) True, but Norway invests heavily in infrastructure (building highways through the fjords is crazy expensive) and technology. They also very carefully manage their oil money so that they will last for generations once the oil is gone. At least they are not building skyscrapers in the desert...