NYT: Thriving Norway Provides and Economic Lesson (Landon Thomas Jr.)

I would love to live in Norway. Because then someone would be paying me to be unemployed...forever. Contrast the welfare state of Norway with that of America's where in a few decades the government will no longer be able to provide medicare and social security benefits to the public. Apparently, Norway is doing swimmingly well in the these times of financial straits...of course it helps that Norway has always been rich. Norway is the third largest oil exporter in the world and owes much of its comfortable living standards to black gold. But something that is different about Norway from say America or Britain (despite being socialist that is) is that Norwegians seem to have a real penchant for frugality, specifically saving in boom years. Much of the oil revenue Norway has generated over the years has gone straight into its sovereign wealth fund to be used to make investments around the world. This behavior resides not only in the government actions but also in the belief in debt avoidance among its citizens: "Eirik Wekre, an economist who writes thrillers in his spare time, describes Norwegians’ feelings about debt this way: 'We cannot spend this money now; it would be stealing from future generations.' "

Of course, Norway's extensive welfare state may backfire in the long run. I think there is a problem with people can choose not to work and still live comfortably. The article describes this example:

"Paul Bruum takes a needle full of amphetamines and jabs it into his muscular arm. His scabs and sores betray many years as a heroin addict. He says that the $1,500 he gets from the government each month is enough to keep him well-fed and supplied with drugs. Mr. Bruum, 32, says he has never had a job, and he admits he is no position to find one. “I don’t blame anyone,” he said. 'The Norwegian government has provided for me the best they can.' "

So yeah, still not sure which is better: capitalism or socialism. But I do think that culture of saving is a good thing...

Thriving Norway Provides and Economic Lesson