New story in the New York Times about Norway and how well they are doing economically. Of course they are extremely lucky because of the oil they have been pumping and exporting out of the North Sea, but they also deserve some credit for investing the oil revenue rather than spending it all.
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.
I feel lucky to have permanent residency in Norway, but when I am there I am overwhelmed by the really high prices, especially for alcohol, tobaco, and gasoline. Of course I appreciate taxes on demerit goods, but tough to live in a place where you can’t afford to go out for a meal.
By the way, the photo is from Bergen, where I used to live and about 50 kms from where I keep my boat.