A missed alternative to slash and burn economic management

Discussion in 'Economics' started by Bazzinho1977, Oct 19, 2010.

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  1. Norway seem to have got it right.

    Pension / Economic Hole? Nowhere to be seen. If only we'd had a government clever enough to do this - instead of giving all the money to private investors to then burn away in the Gulf of Mexico.

    BBC News - Norway 'petroleum fund' tops $500bn

    Still, the market knows best, eh?
  2. No no no - it can't be true. Gordon and Alistair told us that all countries were suffering and it was all the fault of the nasty Americans. How could a country like Norway hope to survive largely unscathed when it was a global problem, nothing to do with the actions of the UK government.

    Well perhaps the fact that Norway isn't in the EU might have helped. Despite being what is termed a "bastion of welfare capitalism", Norway ensured that its financial system was regulated well enough to avoid taking massive risks. Contrast that with the stance Gordon Brown took when he encouraged the UK system to keep speculating.

    Norway spends its oil revenue on pensions because it can afford to - it has lived within its means whilst steadily reducing its higher levels of tax. There is a down-side of course in that its cost of living is higher than most EU countries, VAT is 25% and the whole country eats fish at least three times a day.
  3. What level of income tax does Norawy have?
  4. Do you really want me to google Norawy income tax for you?
  5. Just making a point that norwegians pay more than we do.

    As for living within its means, I thought that as of last year the public debt of Norway was over 60%
  6. rampant

    rampant LE Book Reviewer Kit Reviewer

    Norway Debt - external - Economy
  7. And I believe the economy shrank to 1.1% last year?
  8. Did you bother reading wot I wrote!

    Higher levels of tax have reduced. Cost of living is higher... (mostly due to taxes). Income tax is 28% but includes contributions for healthcare, sick pay etc. So maybe if you include NIC to UK taxes there is not such a difference. Wouldn't expect you to have much personal experience and knowledge of recent rises NI Contributions though.

    Having high levels of either personal or state debt is not the issue - the issue is whether you can re-pay it. The UK clearly can't unless it cuts its running costs. Norway clearly can if it can afford to keep subsidisng pensions with its oil revenues. If the international markets didn't believe that Norway could do it they would cripple the country with higher interest rates.
  9. I apologise - the growth rate was MINUS 1.5 last year.

    So much better off than us.
  10. Biped

    Biped LE Book Reviewer

    So, Norway, outside the EU is a creditor, not a debtor nation. It's got plenty of wedge besides, makes a packet from Oil wealth and calls itself a 'capitalist' haven!?!?

    Surely there's some mistake - don't they mean 'Socialist Eutopia', or does it need to be inside the EU to be a Utopia?

    Good on them and all that, but I'm not sure about the fish thing - 3 times a day you say?!
  11. Excellent news. So the British Government can tax you up to the eyeballs and you'll get a pension that won't buy you anything of material value.

    Sod thatt - I'm for a government that taxes and legislates as little as possible.
  12. Actually I don't understand the chart, how come CIA reports debt of 60.6% and yet they are a net external creditor. Are they saying that all Norways debt was bought up by Norwegians or that they own more of other countries debt than others have theirs?
  13. rampant

    rampant LE Book Reviewer Kit Reviewer

    TBF EU membership is not really the crux of the issue Norway still has to pay "dues" as a percentage of GDP (For the EEA and Norway Grants from 2004 to 2009, Norway provided almost €1.3 billion). , the issue is how the government chose to invest the revenues from the Oil Industry, instead of flinging it to the private sector to line the pockets of the few or blown on public vanity projects or ill concieved shortermist vote buying the Govt. elected to invest it for the long term benefit of the nation as a whole.

    Whet I believe it is because the debt is that of other countires owned by Norway.
  14. Thanks Rampant