In theory yes. This is a clear guide to the rest of the world of "how it should be done", and has been so for many years. - So why isn't it like that everywhere? Greed and corruption are the answers.
At its peak, North Sea oil represented about 3% of UK GDP. In Norway, it can be >70% of GDP. That makes Norway a petrostate therefore not comparable to the UK economy. There's little evidence in Norway that the artificial wealth accumulating due to its oil industry has benefited Norwegians. Norway remains the world's least self-sufficient nation on the periphery, geographically and culturally, with an uninspiring onshore economy cursed by oil. Teachers and nurses in Norway are paid salaries pretty comparable to those in the UK. It costs 2-3 times more (without a cost-of-living crisis) to live in Norway. Taxes are much higher in Norway and discretionary incomes don't go far. Do the maths.
@@johnmcmullan9741 You should perhaps check your data. Salaries in Norway outpace the ones in the UK by a mile, cost of living is higher than the UK, but not 2 or 3 times. The standard of living is higher in Norway. The oil revenues, apart from the high salaries in the oil industry, have not been spend yet, they were collected in the wealth fund.
@@mjoelnir1899 Rubbish, that's just what some need to believe. Why don't you recheck your data? I've been living in Norway for 10 years. I know exactly what gets passed off as "standard of living" in Norway. Apart from the higher levels of household debt in Norway, you only have to visit your local grocery store for a valid measure of Norway's "standards". There's very little competition in Norway so very little value for your money. Daylight robbery and extortion seem to be the norm. You can't even buy a nice cod fillet in Norway, despite it having a huge cod fishery. Compare job markets to get an idea of career opportunities too. Education is miles ahead in the UK. As is science and R&D generally. The UK pays its fair share towards NATO as well, while Norway doesn't. The UK has more than enough fertile arable land and a good climate to be self-sufficient, if it ever needed to be. Norway doesn't and will always depend on food imports to survive. I could go on and on, but I'll just finish by pointing out that in the latest international expat survey, Norway was ranked as one of the worst places to live, a miserable 52nd out of 53 countries. Despite its problems, the UK doesn't prescribe xenophobic flag-waving ultranationalism. And remind me why there are significantly more Norwegians living in the UK than Brits living in Norway? And why all Norwegians resident in the UK before Brexit were granted residency ages ago while Norway still has a very embarrassing backlog after two years? There seems to be a very concerning lack of basic competency in Norway. Everything seems to be an inefficient uphill struggle.
@@johnmcmullan9741 Do not request that he challenge his indoctrination, as he will become disheartened upon discovering that only individuals employed at McDonald's and those in low to medium-level positions earn higher incomes in Norway when compared to more reputable nations. Social democracy has diminished the aspirations of the average individual, as the prospect of amassing wealth in Norway remains elusive. Furthermore, once one achieves affluence, the specter of kleptocracy looms ominously. This illustrates the inherent drawbacks of semi-socialism. There's no hope for the clever or bright man.
5:00: This is not entirely accurate. Because it was the hydroelectric power that first led to the creation of "hjemfallsretten", which is that all natural resources that are exploited by foreign corporations, must be returned to the people at some point in time. We did this with the oil, but that was the second time we had success with it. The first was in 1909. Many countries would do well to learn from this.
The full story is actually more inspiring, because it began with an invention that has doubled the size of human civilization; artificial fertilizer. It's called the Birkeland-Eyde process and it requires enormous amounts of electricity, but it can feed billions of people. That's why we created our massive hydroelectric power, which we didn't have the skills or finance to do. So we let foreign companies invest in building it on the term that it would eventually be returned to the Norwegian people. That's how Norway first got very wealthy. We did it again with the oil sixty years later. But this method requires a lot of trust, which makes trust the most important commodity in the world.
@@jeschinstad I am saying because I am most likely going to end up in poverty in Austria, I will probably earn more money working in a fish factory in Norway
@@Nousinvisibles: Norwegian fish factory workers are paid ok by Norwegian standards. We currently export 80% of our fish unrefined, so more fish factory workers are definitely welcome. :)
Sir , Norwegians, world must agree, have had stream of people leaders, who really cared and stood up test of time to put Norwegians and their holistic prosperity at Center & Forefront in those decisions that ushered and lead Norwegians to where they stand to date
We sold all our oil and gass off under Thatcher in the 80s... there are videos on this on youtube if you look? That's why we are £2.4 trillion in debt, while Norway has a 'huge' surplus!
@@sebastianwrites Your statement is false. The government of Norway does not own the oil. Their wealth fund is funded with taxes levied from oil and gas companies. The UK should have put those oil tax revenues in a wealth fund like Norway, instead of squandering them in social programs that don’t work.
@@karlweiss7560 You are incorrect, and skewing this topic to fit your own bias. And what social programs... seriously get a grip? We have more foodbanks than ever, we didn't even know what these were a 15 years or so ago... it's an appalling indictment on our society! And by the way, the countries which are 'repeatedly' are voted the "happiest" in the world have proportional representation voting, and on average citizens pay 60% tax, and have "extensive" social programs.
Resource Curse - so true ! Norway showed their intelligence. 1996 an interesting moment so too 2008 to be able to be contrarian. Now in 2022 how contrarian can you play?
Could you even imagine a politician in America proposing the Norwegian model for anything? It's all about me and you can look out for yourself - capitalism at its basest form. The oligarchy wouldn't allow any congressperson or senator to utter a word along the Norwegian model.
What happens is that _politicians_ become corrupted of all this money. They use way too much of the money to held up status quo instead of making necessary changes to the bureaucracy which cost much more than in any other country. People get unsustainable benefits that can't last when the oil era is over. This policy increases inflation and makes a lot of people lazy.
Thats not how it works in any way. They are investing the money in passive index instead of spending it on wellfare in the moment. Prob reducing inflation because they dont have to print as much money.
@@jarvanwildrift8056The government is using 409.8 billion kroner from the Oil Fund to balance next year's state budget. This is historically high and represents an increase of 37.5 billion. Read my first post once more!
@@jarvanwildrift8056 While it's not actually passive index funds they are investing in (it's very much actively invested), the share scale of the fund makes it almost indistinguishable. In a certain way, the funds sher economic power is a way for Norway to influence the companies in the world and pushing it's values through ownership.
Not excactly a million usd per capita, but with 5 000 billion NOK extra added in the fund since this was filmed 2 years ago, its well past 300 k USD per capita
They were smart. Poor countries throw away their limited money with mismanagement and corruption, which contrary to the existing narrative is a product of the ethical and altruistic lapses of their peoples. Rich countries are increasingly and stupidly acquiring higher levels of debt to finance their expenditures. Again a reflection of the greed and shortsighted behavior of their peoples. Norway did the smart thing. They should be proud, keep it going, screw everyone else. I've been poor and been to poor countries. It's primarily a question of every citizen at every level trying to do the right thing. This is lacking in many countries. Bravo Norway.
It is the state that decides how to use this money, ordinary Norwegians have no influence on this. The state is currently expanded beyond its means and is using 3 % of the capital every year to fund the deficit. Of course Norway is a much safer and easier place to live than almost anywhere in the world because of an abundance of funds and government jobs, but there is a risk now that we are making the society so inefficient that we will loose out in the long term. Furthermore the fund is mainly invested in the US stock market and government bonds, so if the US goes down so do we. Currently in Norway we have issues with an inefficient health care system, long waiting times and lack of services, we have very high taxes on people and companies and a rapidly declining currency value making us all poorer. Norwegians are no longer feeling rich when we travel in Europe, we have lost 30-40 % of the currency value towards Euro in a few years. Personal debt is among the highest in the world. So the state is rich and we are getting poorer.
Not entirely accurate here. Has the wealth difrence between norway and europe sunk, probably. Do we have high taxes, yes but. The income tax isn't high compared to other countries like the US and France. We just have more tax on everything else we consume. "Norwegians are no longer feeling rich when we travel in Europe" If you look at this statement. You would say that it is a bad thing, that Norwegians feel like they are on par with the nr. 4, 5, and 6th largest economies in the world. And side note. Visited London last year, and Prauge In february. And i did feel rich, everythign is cheaper, Beer in a bar in London goes for about 40-50kr (4-5 eur). thats half the price of here in Norway. Food was cheaper, living costs, and even more so when i visted Prauge. It is easy to only look at ourself, and have rose tinted glasses about the past. But take an honest look at other countries, and try and see what problems they have. USA, mass shootings, gangs taking over cities, homlesness. England, Major protests, people can't afford to live where they are used to, food problems, unstable goverment. So it is not just Norway having problems, but we keep ourself to this insane high standard. Lets take this into a final context. Tangen here has to sell his million dollar ferrari, and settle for only driving a 2024 Mercedes S class. He can now only travel abroad 12 weeks of the year. And has to cook food at home in the weekends, because he can't eat out at a michelin star restruant 7 days a week. This life still sounds like an absolute dream to everyone else. And that is how Norway is looked at by the rest of the world, whilst we only see what we could've been, only look at the great things from our past, and none of the problems we have. Rose tinted glasses are a thing when looking back.
I am the future generation, but have not seen a kroner of the oil fund money. As an earner in Norway expect to pay 37 to 42 % tax on all income. Expect that your children will have to pay a massive tax if they inherit your property. Norway is a great place for people that don't work so hard, but for hard working people, not so much. Big owners are all looking for government special favors at the expense ofnthe tax payer.😢
Assuming he told the truth when he said 20% of our budget is covered by the fund, you definitely do see benefit from it. It's paying for education, welfare, infrastructure, healthcare and so on. And if you're paying 37% total tax on your income in Norway you're earning 1.5 million NOK per year which puts you in or near the top 1% and you have absolutely nothing to complain about. More likely you're just another complainer who doesn't understand how progressive tax works, and you're paying nowhere near 37%. Most people pay less than 30% total tax. And that's completely fair given that we get education and healthcare and all kinds of other stuff for free.
@@oliver-04 Most likely the people you're talking to just don't understand the tax system. The way the tax system works is that there is a base tax of 22%, a social security fee of 7,8% and additionally a step system that increases the more you earn. The steps are as follows: 208,000-292,000: 1.7% 292,000-670,000: 4% 670,000-937,000: 13.6% 937,000-1,350,000: 16,6% 1,350,000-infinity : 17,6% So, if you earn more than 1,35 million, you're paying 22 + 7,8 + 17,6 = 47,4% tax BUT ONLY ON THE INCOME THAT IS ABOVE 1.35 MILLION. Meaning if you earn 1,500,000, you're paying 47,4% tax on 150,000NOK. For the income between 937k-1,350k you're paying 46,4%, and for the income between 670k-937k you're paying 43,4%, and so on. So: 208k * 0.298 = 61.9k 84k * 0.315 = 26.46k 378k * 0.338 = 127.76k 267k * 0.434 = 115.88k 413k * 0.464 = 191.63k 150k * 0.474 = 71.1k In total you're paying 61.9 + 26.46 + 127.76 + 115.88 + 191.63 + 71.1 = 595,000NOK in taxes, on your 1.5 million NOK earnings, which is a total of 39,6%. So my estimate was a bit high, but the real calculation is also more complicated than my napkin math here. For example if you have a mortgage you get a tax exemption for 22% of the interest you pay, which would bring this hypothetical earner closer to 37%.
@@nerfzinet You also doesn't pay any taxes on the first 104k you earn (minstefradrag), as well as getting tax cuts from loan intrests, union fees and such. All in all, I only end up paying 26% tax on a 855k salery, something that's pretty low in my opinion. I'm happily paying my tax in order to uphold the society I live in.
No inheritance tax in Norway as of 2014. There is a wealth tax, but while controversial in Norway; if that wealth is invested in let's say index funds, you're still going to have a pretty sweet net positive from that. If that wealth is in the form of estate/property, it's pretty much the same as long as the housing market doesn't massivley deviate from it's normal behaviour the last 40 years.
He also should have mentioned they had used the expertise of the Iraqi geologist on not only finding the oil but also creating the blueprint of this concept on how not to lose tahe profits like many countries in Middle East and South America who found oil and got fully exploited by British and American companies and private sector companies inside the country itself !
@@Storyraymond Its true, his name was Farouk Al-Kasim and he was instrumental in shaping Norway's oil industry. He helped establish sustainable resource management and played a key role in creating the Norwegian Petroleum Directorate (NPD), ensuring Norway's oil wealth was developed responsibly and for long-term benefit
If you live here, you see it every day, Bubba. I you're not able to see it, i suggest you take an educational tour to not so fortunate societies. Maybe start with the rust-belt or what used to be the richest town in the US, Detroit...
If the oil fund money stands for 20% of the national budget, you can think of it like this. Every time you drive a car, the roads you use are 20% paid for by the oil fund. If you have to go to the hospital, 20% of the cost is paid for by the fund. Now if, we were all to think like that "Where is my million" We would not have this wealth. The rich would get richer, whilst you, me, and everyone you know, would be living in mud houses, looking at the politiants driving bentleys and ferraries.
@@Storyraymond Vel...Har da gjort en god del av bygging av landet. Når Tangen, som åler seg framover og tar hva han vil ha sammen med vennene sine, mens fattige nordmenn må gå uten gatelys fordi kommunene sparer penger, SAMTIDIG mener at nordmenn er rike, blir det fryktelig provoserende. Tangen ER en dritt. en STOR dritt. Det er forøvrig det politiske partiet som du tilhører også. Forbanna løgner år etter år. Og DU med dine herlige iq troll, tror på det! utrolig...
@@TheTechNiShan This is true, but it's a rather recent issue, even though our sick issue benefits haven't changed for quite some time. It's more of a change in work culture that has to be tackled.
He could have focussed less on the money, and more on how that money is used to help with education, schools, hospitals... certainly Norway should not have a 'homeless' problem with all that wealth? Having said that, no advanced democracy should!
They ideally wouldn't, indeed. Although it's worth noting that the proportion of homeless people per 10k is extremely low at 7, which is less than half that of the US at 17, and far less than the UK at around 54. So it is one of the absolute lowest in the world, probably helped by this abundance of resources.
In order to avoid the dutch disease, Norway's gov has to use the handlingsregelen when spending income from the oilfund. Meaning they may use 2-4 %. In 2023 that is 366 billion NOK. Gov income largely comes from taxes and duties. There is also a very special way of setting salaries in Norway. The trade union for the industry sector negotiate first. It's called the Frontfagsmodellen. It determines the standard and expected level of income, taking into the acount of changes in living costs etc. One of the thing this model affects is that salaries in Norway aren't super high. But the minimum wage is in comparison with other nations higher. And most would concider themsselves middle class. So the living standard statisticly is high, overall. Also, it is very visible and transparent, where the money is spent - when it comes to taxes. We all know that everyone through the tax-system pay our part in education, healthcare, culture/sports, infrastructure etc. There is no "Free" anything. We all pitch in with the level we are able to pitch in. Every year the information about everyones income and wealth is available and transparent for everyone to see. Not paying taxes in Norway is very frowned upon, because its basicly viewed as shooting yourself in the foot. If you cheat the system, it will collapse. It's not perfect. Someone will always try to cheat the system and misuse it, but in general - every norwegian understands how it works. The Key is trust. Trust in the system, the people, your neighbour - that we all contribute and do our due diligence.
So it has a lot to do with culture. Then the people who manages the money in the right way, at the right time. All are political parties have their agenda and focus areas, but common to them all are core values and understanding of the framework they work within. But the most important thing is, and you can see that in any Nation really, is investing in your people. Meaning education for all (make it super available), and invest in institutions and infrastructure that makes it possible for people to be productive, innovative and creative. For a person to be all those things, it needs the basics (food, shelter etc.) But also having good health, physicly and mentally. (norwegians spend a lot of time outdoors in nature) The gov invests in the local societies in ways that highlights the importance of activity and cultural input. And time. (kindergarden for kids, so that both parents can work). Etc. It makes sense saying it. But it's complex and takes time to build. Again, trust being the core value of everything
This comes down to the egg and the chicken for some of these... Some roads you pay toll for have already been paid by a government issued loan, the toll goes towards paying that down. In that case where does the government get the original credit from you think? Also, not all new roads or maintenance of old roads is paid with toll. You need a bit more perspective before calling him out as a snake I think.
@@ShadowTani After calculus, we can transform any amount related to time into a now-value. When we sum up all traffic related taxes (including tolls) it amounts to three times more than what is used at traffic related expences. Thus, traffic related taxes are used as a milking cow by the kleptocracy.
so what if it was funded by oil? you said that NAV will dry up when oil dries up... that is not true because oil is currently not the fund's main source of income and is actually very far from it
@@jayjay8120: So we withdraw 3% when the fund grows 7% and you think that means the fund must be shrinking, huh? :) We are so lucky that FrP was the only party that wanted to donate the oil revenue to the global financial market. We would each have lost over 200,000 dollars if they had more voters that year.
Just give me my share and I`ll be out of here 🤑! It is just a matter of time before the sosialist imported votes will empty Elises jar and Nicolai will be without a job.
@@sailingviking7885: You are incredibly ill informed. When you beg to pay for wealth management rather than having it for free and to be taxed rather than having your income at 0% tax, it proves with absolute certainty that you don't understand anything about economics.
@@jeschinstad Hmmm ,,,, what kind of nonsense answer are you coming up with. What does "we" get for free? You are actually taxed for the National Insurance up to 25% of the income depending on the size of the income and work area. In addition, my comment was based on the increased burdens on NBIMs that increase with the population, which now basically changes due to increased immigration without the payments to the National Insurance increase on the same scale. Maybe you should read more carefully and rather examine realities instead. My advice to you is to get out of the red mist that your head is obviously in.
@@sailingviking7885: «What does "we" get for free? » Uh, it's a legal tax haven? Let's say we pay you a 100,000 usd of your oil money. So you invest it in the American stock market and it turns out you're really good at it and you make 10% every year for 20 years, which is the Norwegian average. Great, right? After 20 years, you have 672749 on your account. Except that's not true, because unlike Norway, you have to pay taxes every year. So what _you_ have, after having paid your taxes to America, is 511204 usd. You have so far lost 161545 dollars by taking your money out of the GPFG. But we have ignored your fees and American banks don't operate for nothing. It adds up, man. But let's ignore that fact, because now it's time for you to pay your taxes to The Kingdom of Norway, which is 35,2%. In summary, because of your disgust of Norway and your false sense of superiority, you are left with 331260 dollars instead of 672749 you would've had by keeping it tax exempt. You have lost 341489 American dollars on your disgust of Norway. In case you're curious, that's 1422 dollars per month for twenty years. So, when you ask what you got for free during these last 20 years, my answer is very simple; you got 341489 dollars of risk-free income. Except of course, we didn't start with 100,000 usd twenty years ago. After all, we're at the very beginning of this adventure.
This shows how good decisions for the benefit of all by politicians can brighten the future for generations
In theory yes. This is a clear guide to the rest of the world of "how it should be done", and has been so for many years. - So why isn't it like that everywhere? Greed and corruption are the answers.
The Norwegians maximized the wealth of the Norwegian people from oil. The UK, USA and so on maximized the profit of companies from oil.
At its peak, North Sea oil represented about 3% of UK GDP. In Norway, it can be >70% of GDP. That makes Norway a petrostate therefore not comparable to the UK economy. There's little evidence in Norway that the artificial wealth accumulating due to its oil industry has benefited Norwegians. Norway remains the world's least self-sufficient nation on the periphery, geographically and culturally, with an uninspiring onshore economy cursed by oil. Teachers and nurses in Norway are paid salaries pretty comparable to those in the UK. It costs 2-3 times more (without a cost-of-living crisis) to live in Norway. Taxes are much higher in Norway and discretionary incomes don't go far. Do the maths.
@@johnmcmullan9741 You should perhaps check your data. Salaries in Norway outpace the ones in the UK by a mile, cost of living is higher than the UK, but not 2 or 3 times. The standard of living is higher in Norway. The oil revenues, apart from the high salaries in the oil industry, have not been spend yet, they were collected in the wealth fund.
@@mjoelnir1899 Rubbish, that's just what some need to believe. Why don't you recheck your data? I've been living in Norway for 10 years. I know exactly what gets passed off as "standard of living" in Norway. Apart from the higher levels of household debt in Norway, you only have to visit your local grocery store for a valid measure of Norway's "standards". There's very little competition in Norway so very little value for your money. Daylight robbery and extortion seem to be the norm. You can't even buy a nice cod fillet in Norway, despite it having a huge cod fishery. Compare job markets to get an idea of career opportunities too. Education is miles ahead in the UK. As is science and R&D generally. The UK pays its fair share towards NATO as well, while Norway doesn't. The UK has more than enough fertile arable land and a good climate to be self-sufficient, if it ever needed to be. Norway doesn't and will always depend on food imports to survive. I could go on and on, but I'll just finish by pointing out that in the latest international expat survey, Norway was ranked as one of the worst places to live, a miserable 52nd out of 53 countries. Despite its problems, the UK doesn't prescribe xenophobic flag-waving ultranationalism. And remind me why there are significantly more Norwegians living in the UK than Brits living in Norway? And why all Norwegians resident in the UK before Brexit were granted residency ages ago while Norway still has a very embarrassing backlog after two years? There seems to be a very concerning lack of basic competency in Norway. Everything seems to be an inefficient uphill struggle.
@@johnmcmullan9741 Do not request that he challenge his indoctrination, as he will become disheartened upon discovering that only individuals employed at McDonald's and those in low to medium-level positions earn higher incomes in Norway when compared to more reputable nations. Social democracy has diminished the aspirations of the average individual, as the prospect of amassing wealth in Norway remains elusive. Furthermore, once one achieves affluence, the specter of kleptocracy looms ominously. This illustrates the inherent drawbacks of semi-socialism. There's no hope for the clever or bright man.
@@johnmcmullan9741 Norway can feed 50 million people on fish alone. I don't think Norwegians will starve any time soon.
5:00: This is not entirely accurate. Because it was the hydroelectric power that first led to the creation of "hjemfallsretten", which is that all natural resources that are exploited by foreign corporations, must be returned to the people at some point in time. We did this with the oil, but that was the second time we had success with it. The first was in 1909. Many countries would do well to learn from this.
Yes you are correct. But isn that part of how it was possible to take the rout we took?
I would love to move to Norway 🇳🇴 this is such an inspiring story
The full story is actually more inspiring, because it began with an invention that has doubled the size of human civilization; artificial fertilizer. It's called the Birkeland-Eyde process and it requires enormous amounts of electricity, but it can feed billions of people. That's why we created our massive hydroelectric power, which we didn't have the skills or finance to do. So we let foreign companies invest in building it on the term that it would eventually be returned to the Norwegian people. That's how Norway first got very wealthy. We did it again with the oil sixty years later. But this method requires a lot of trust, which makes trust the most important commodity in the world.
@@jeschinstad I am saying because I am most likely going to end up in poverty in Austria, I will probably earn more money working in a fish factory in Norway
@@Nousinvisibles: Norwegian fish factory workers are paid ok by Norwegian standards. We currently export 80% of our fish unrefined, so more fish factory workers are definitely welcome. :)
@@jeschinstad sign me up :)
Dont. Thank you
Funny how there is a blueprint on how to live life ethically through capitalism but 99.9% dont know or dont care to know about this.
Salute to Norway.
1000%
Sir , Norwegians, world must agree, have had stream of people leaders, who really cared and stood up test of time to put Norwegians and their holistic prosperity at Center & Forefront in those decisions that ushered and lead Norwegians to where they stand to date
People leaders😂
Britain must do this to survive the incoming decades.
We sold all our oil and gass off under Thatcher in the 80s... there are videos on this on youtube if you look? That's why we are £2.4 trillion in debt, while Norway has a 'huge' surplus!
@@sebastianwrites Your statement is false. The government of Norway does not own the oil. Their wealth fund is funded with taxes levied from oil and gas companies. The UK should have put those oil tax revenues in a wealth fund like Norway, instead of squandering them in social programs that don’t work.
@@karlweiss7560 You are incorrect, and skewing this topic to fit your own bias.
And what social programs... seriously get a grip?
We have more foodbanks than ever, we didn't even know what these were a 15 years or so ago... it's an appalling indictment on our society!
And by the way, the countries which are 'repeatedly' are voted the "happiest" in the world have proportional representation voting, and on average citizens pay 60% tax, and have "extensive" social programs.
Well, you exaggerate. Taxes aren’t nearly that high here 😄
it’s kinda crazy how nobody’s talking about the forbidden ebook called 25 Money Secrets From Donald Trump
Resource Curse - so true ! Norway showed their intelligence. 1996 an interesting moment so too 2008 to be able to be contrarian. Now in 2022 how contrarian can you play?
we are unloading our positions as we speak.
With the extra 1700 billion kroners from oil & gas in 2022 the oilfund is waiting for the stock crash. The Oilfund is unloading the russian stocks.
Could you even imagine a politician in America proposing the Norwegian model for anything? It's all about me and you can look out for yourself - capitalism at its basest form. The oligarchy wouldn't allow any congressperson or senator to utter a word along the Norwegian model.
thank you
Very inspiring tq
What happens is that _politicians_ become corrupted of all this money. They use way too much of the money to held up status quo instead of making necessary changes to the bureaucracy which cost much more than in any other country.
People get unsustainable benefits that can't last when the oil era is over. This policy increases inflation and makes a lot of people lazy.
Thats not how it works in any way. They are investing the money in passive index instead of spending it on wellfare in the moment. Prob reducing inflation because they dont have to print as much money.
@@jarvanwildrift8056The government is using 409.8 billion kroner from the Oil Fund to balance next year's state budget. This is historically high and represents an increase of 37.5 billion.
Read my first post once more!
Yes. Exactly.
@@jarvanwildrift8056 While it's not actually passive index funds they are investing in (it's very much actively invested), the share scale of the fund makes it almost indistinguishable. In a certain way, the funds sher economic power is a way for Norway to influence the companies in the world and pushing it's values through ownership.
Not excactly a million usd per capita, but with 5 000 billion NOK extra added in the fund since this was filmed 2 years ago, its well past 300 k USD per capita
Doesnt he mean KR? 300k USD = 2.4 million Norwegian kroners
They were smart. Poor countries throw away their limited money with mismanagement and corruption, which contrary to the existing narrative is a product of the ethical and altruistic lapses of their peoples. Rich countries are increasingly and stupidly acquiring higher levels of debt to finance their expenditures. Again a reflection of the greed and shortsighted behavior of their peoples. Norway did the smart thing. They should be proud, keep it going, screw everyone else. I've been poor and been to poor countries. It's primarily a question of every citizen at every level trying to do the right thing. This is lacking in many countries. Bravo Norway.
It is the state that decides how to use this money, ordinary Norwegians have no influence on this. The state is currently expanded beyond its means and is using 3 % of the capital every year to fund the deficit. Of course Norway is a much safer and easier place to live than almost anywhere in the world because of an abundance of funds and government jobs, but there is a risk now that we are making the society so inefficient that we will loose out in the long term. Furthermore the fund is mainly invested in the US stock market and government bonds, so if the US goes down so do we. Currently in Norway we have issues with an inefficient health care system, long waiting times and lack of services, we have very high taxes on people and companies and a rapidly declining currency value making us all poorer. Norwegians are no longer feeling rich when we travel in Europe, we have lost 30-40 % of the currency value towards Euro in a few years. Personal debt is among the highest in the world. So the state is rich and we are getting poorer.
Not entirely accurate here. Has the wealth difrence between norway and europe sunk, probably. Do we have high taxes, yes but. The income tax isn't high compared to other countries like the US and France. We just have more tax on everything else we consume. "Norwegians are no longer feeling rich when we travel in Europe" If you look at this statement. You would say that it is a bad thing, that Norwegians feel like they are on par with the nr. 4, 5, and 6th largest economies in the world. And side note. Visited London last year, and Prauge In february. And i did feel rich, everythign is cheaper, Beer in a bar in London goes for about 40-50kr (4-5 eur). thats half the price of here in Norway. Food was cheaper, living costs, and even more so when i visted Prauge.
It is easy to only look at ourself, and have rose tinted glasses about the past. But take an honest look at other countries, and try and see what problems they have. USA, mass shootings, gangs taking over cities, homlesness. England, Major protests, people can't afford to live where they are used to, food problems, unstable goverment. So it is not just Norway having problems, but we keep ourself to this insane high standard.
Lets take this into a final context. Tangen here has to sell his million dollar ferrari, and settle for only driving a 2024 Mercedes S class. He can now only travel abroad 12 weeks of the year. And has to cook food at home in the weekends, because he can't eat out at a michelin star restruant 7 days a week. This life still sounds like an absolute dream to everyone else. And that is how Norway is looked at by the rest of the world, whilst we only see what we could've been, only look at the great things from our past, and none of the problems we have. Rose tinted glasses are a thing when looking back.
@@cykacat4196 Complainers are never accurate, because if they actually knew what they were talking about they wouldn't be complaining.
Thinkers,Tailor ,Sailors and Fishermans
Millionaires on paper!
So norwegian are millionaires when they buy a million dollar house with no mortage? Car? property? when are you a millionaire?
Do they give billions to other countries?
I am the future generation, but have not seen a kroner of the oil fund money. As an earner in Norway expect to pay 37 to 42 % tax on all income. Expect that your children will have to pay a massive tax if they inherit your property. Norway is a great place for people that don't work so hard, but for hard working people, not so much. Big owners are all looking for government special favors at the expense ofnthe tax payer.😢
Assuming he told the truth when he said 20% of our budget is covered by the fund, you definitely do see benefit from it. It's paying for education, welfare, infrastructure, healthcare and so on.
And if you're paying 37% total tax on your income in Norway you're earning 1.5 million NOK per year which puts you in or near the top 1% and you have absolutely nothing to complain about. More likely you're just another complainer who doesn't understand how progressive tax works, and you're paying nowhere near 37%. Most people pay less than 30% total tax. And that's completely fair given that we get education and healthcare and all kinds of other stuff for free.
@@nerfzinet most people in Norway that i know also pay 37%, it doesnt mean you earn 1.5 million NOK
@@oliver-04 Most likely the people you're talking to just don't understand the tax system.
The way the tax system works is that there is a base tax of 22%, a social security fee of 7,8% and additionally a step system that increases the more you earn. The steps are as follows:
208,000-292,000: 1.7%
292,000-670,000: 4%
670,000-937,000: 13.6%
937,000-1,350,000: 16,6%
1,350,000-infinity : 17,6%
So, if you earn more than 1,35 million, you're paying 22 + 7,8 + 17,6 = 47,4% tax BUT ONLY ON THE INCOME THAT IS ABOVE 1.35 MILLION. Meaning if you earn 1,500,000, you're paying 47,4% tax on 150,000NOK. For the income between 937k-1,350k you're paying 46,4%, and for the income between 670k-937k you're paying 43,4%, and so on.
So:
208k * 0.298 = 61.9k
84k * 0.315 = 26.46k
378k * 0.338 = 127.76k
267k * 0.434 = 115.88k
413k * 0.464 = 191.63k
150k * 0.474 = 71.1k
In total you're paying 61.9 + 26.46 + 127.76 + 115.88 + 191.63 + 71.1 = 595,000NOK in taxes, on your 1.5 million NOK earnings, which is a total of 39,6%.
So my estimate was a bit high, but the real calculation is also more complicated than my napkin math here. For example if you have a mortgage you get a tax exemption for 22% of the interest you pay, which would bring this hypothetical earner closer to 37%.
@@nerfzinet You also doesn't pay any taxes on the first 104k you earn (minstefradrag), as well as getting tax cuts from loan intrests, union fees and such. All in all, I only end up paying 26% tax on a 855k salery, something that's pretty low in my opinion. I'm happily paying my tax in order to uphold the society I live in.
No inheritance tax in Norway as of 2014. There is a wealth tax, but while controversial in Norway; if that wealth is invested in let's say index funds, you're still going to have a pretty sweet net positive from that. If that wealth is in the form of estate/property, it's pretty much the same as long as the housing market doesn't massivley deviate from it's normal behaviour the last 40 years.
He also should have mentioned they had used the expertise of the Iraqi geologist on not only finding the oil but also creating the blueprint of this concept on how not to lose tahe profits like many countries in Middle East and South America who found oil and got fully exploited by British and American companies and private sector companies inside the country itself !
? Why dont you tell us about this. Its a first for me.
@@Storyraymond Its true, his name was Farouk Al-Kasim and he was instrumental in shaping Norway's oil industry. He helped establish sustainable resource management and played a key role in creating the Norwegian Petroleum Directorate (NPD), ensuring Norway's oil wealth was developed responsibly and for long-term benefit
So where is my million? Have not seen it yet.
Im also stil looking, expencive food and gas. The poor will be poor nomatter where they live....
If you live here, you see it every day, Bubba. I you're not able to see it, i suggest you take an educational tour to not so fortunate societies. Maybe start with the rust-belt or what used to be the richest town in the US, Detroit...
If the oil fund money stands for 20% of the national budget, you can think of it like this. Every time you drive a car, the roads you use are 20% paid for by the oil fund. If you have to go to the hospital, 20% of the cost is paid for by the fund. Now if, we were all to think like that "Where is my million" We would not have this wealth. The rich would get richer, whilst you, me, and everyone you know, would be living in mud houses, looking at the politiants driving bentleys and ferraries.
😂
Hvor faen er pengene mine Tangendritt?
Fantastisk innlegg. Slik jeg tolker det, så må du være en reflekterende og omtenksom kar. Slike som deg bygger landet.
@@Storyraymond Vel...Har da gjort en god del av bygging av landet. Når Tangen, som åler seg framover og tar hva han vil ha sammen med vennene sine, mens fattige nordmenn må gå uten gatelys fordi kommunene sparer penger, SAMTIDIG mener at nordmenn er rike, blir det fryktelig provoserende. Tangen ER en dritt. en STOR dritt. Det er forøvrig det politiske partiet som du tilhører også. Forbanna løgner år etter år. Og DU med dine herlige iq troll, tror på det! utrolig...
@@Storyraymondpolitikkerne bygger det ned ihvertfall
Oil.
This is a lie, Norwegian have to work equally hard like any other person. No money is for free. Life is also pretty expensive.
orly ever heard of uføretrygd?
If you really think so, you should compare the working conditions in the US to those in Norway.
@@Paal2005 Norway also has the most sick leave in the entire world.
@@TheTechNiShan This is true, but it's a rather recent issue, even though our sick issue benefits haven't changed for quite some time. It's more of a change in work culture that has to be tackled.
អរគុណ
Türkiye'deki politikacılar : Aynı bizi anlatıyor kanks 🤣🤣
He could have focussed less on the money, and more on how that money is used to help with education, schools, hospitals... certainly Norway should not have a 'homeless' problem with all that wealth? Having said that, no advanced democracy should!
They ideally wouldn't, indeed. Although it's worth noting that the proportion of homeless people per 10k is extremely low at 7, which is less than half that of the US at 17, and far less than the UK at around 54. So it is one of the absolute lowest in the world, probably helped by this abundance of resources.
Or rather, on how those resources are used
In order to avoid the dutch disease, Norway's gov has to use the handlingsregelen when spending income from the oilfund. Meaning they may use 2-4 %. In 2023 that is 366 billion NOK. Gov income largely comes from taxes and duties. There is also a very special way of setting salaries in Norway. The trade union for the industry sector negotiate first. It's called the Frontfagsmodellen. It determines the standard and expected level of income, taking into the acount of changes in living costs etc. One of the thing this model affects is that salaries in Norway aren't super high. But the minimum wage is in comparison with other nations higher. And most would concider themsselves middle class. So the living standard statisticly is high, overall. Also, it is very visible and transparent, where the money is spent - when it comes to taxes. We all know that everyone through the tax-system pay our part in education, healthcare, culture/sports, infrastructure etc. There is no "Free" anything. We all pitch in with the level we are able to pitch in. Every year the information about everyones income and wealth is available and transparent for everyone to see. Not paying taxes in Norway is very frowned upon, because its basicly viewed as shooting yourself in the foot. If you cheat the system, it will collapse. It's not perfect. Someone will always try to cheat the system and misuse it, but in general - every norwegian understands how it works. The Key is trust. Trust in the system, the people, your neighbour - that we all contribute and do our due diligence.
So it has a lot to do with culture. Then the people who manages the money in the right way, at the right time. All are political parties have their agenda and focus areas, but common to them all are core values and understanding of the framework they work within.
But the most important thing is, and you can see that in any Nation really, is investing in your people. Meaning education for all (make it super available), and invest in institutions and infrastructure that makes it possible for people to be productive, innovative and creative.
For a person to be all those things, it needs the basics (food, shelter etc.) But also having good health, physicly and mentally. (norwegians spend a lot of time outdoors in nature) The gov invests in the local societies in ways that highlights the importance of activity and cultural input. And time. (kindergarden for kids, so that both parents can work). Etc.
It makes sense saying it. But it's complex and takes time to build. Again, trust being the core value of everything
he used to be a hedge fund manager. it's how his brain works I think
Im surprised the CIA hasnt found a way to try and steal it from you yet! 🤣
This is not true
Yeah.. were not. Corruption is very high amongst the politicians.
Its the world most expencive country, how do you think it is for poor ppl?? Eat the rich, make them share.
Blue eyes Arab 👻
It doesnt pay for roads you snake! We pay for the roads with the tolls! How dare you!
This comes down to the egg and the chicken for some of these... Some roads you pay toll for have already been paid by a government issued loan, the toll goes towards paying that down. In that case where does the government get the original credit from you think? Also, not all new roads or maintenance of old roads is paid with toll. You need a bit more perspective before calling him out as a snake I think.
@@ShadowTani
After calculus, we can transform any amount related to time into a now-value. When we sum up all traffic related taxes (including tolls) it amounts to three times more than what is used at traffic related expences. Thus, traffic related taxes are used as a milking cow by the kleptocracy.
The tolls only pay a small part of the costs. Building and maintaining roads is extremely expensive
@@AreHan1991 Stop using spiked tires and the cost will decrease a lot.
@@Topper_Harley68another silly prop who dont drive on snow, you know nothing..
1 million Norwegian kroner is around $113,300 not a million by American standards. The NAV will dry up when the oil dries up.
Something like 3% of the overall income of the pension fund comes form oil, chief
@@normann8179 Norway withdraws 3% of the pension fund each year. Also known as the “oil fund” it is an oil fund funded by oil.
so what if it was funded by oil? you said that NAV will dry up when oil dries up... that is not true because oil is currently not the fund's main source of income and is actually very far from it
@@jayjay8120 also give a source for the 3% per year withdrawal
@@jayjay8120: So we withdraw 3% when the fund grows 7% and you think that means the fund must be shrinking, huh? :) We are so lucky that FrP was the only party that wanted to donate the oil revenue to the global financial market. We would each have lost over 200,000 dollars if they had more voters that year.
Just give me my share and I`ll be out of here 🤑! It is just a matter of time before the sosialist imported votes will empty Elises jar and Nicolai will be without a job.
Probably will happen if everyone does what you want to do
@@ronburd4362 Not probably! It will! You obviously do not live here.
@@sailingviking7885: You are incredibly ill informed. When you beg to pay for wealth management rather than having it for free and to be taxed rather than having your income at 0% tax, it proves with absolute certainty that you don't understand anything about economics.
@@jeschinstad Hmmm ,,,, what kind of nonsense answer are you coming up with. What does "we" get for free? You are actually taxed for the National Insurance up to 25% of the income depending on the size of the income and work area. In addition, my comment was based on the increased burdens on NBIMs that increase with the population, which now basically changes due to increased immigration without the payments to the National Insurance increase on the same scale. Maybe you should read more carefully and rather examine realities instead. My advice to you is to get out of the red mist that your head is obviously in.
@@sailingviking7885: «What does "we" get for free? »
Uh, it's a legal tax haven? Let's say we pay you a 100,000 usd of your oil money. So you invest it in the American stock market and it turns out you're really good at it and you make 10% every year for 20 years, which is the Norwegian average. Great, right? After 20 years, you have 672749 on your account.
Except that's not true, because unlike Norway, you have to pay taxes every year. So what _you_ have, after having paid your taxes to America, is 511204 usd. You have so far lost 161545 dollars by taking your money out of the GPFG. But we have ignored your fees and American banks don't operate for nothing. It adds up, man. But let's ignore that fact, because now it's time for you to pay your taxes to The Kingdom of Norway, which is 35,2%.
In summary, because of your disgust of Norway and your false sense of superiority, you are left with 331260 dollars instead of 672749 you would've had by keeping it tax exempt. You have lost 341489 American dollars on your disgust of Norway. In case you're curious, that's 1422 dollars per month for twenty years.
So, when you ask what you got for free during these last 20 years, my answer is very simple; you got 341489 dollars of risk-free income. Except of course, we didn't start with 100,000 usd twenty years ago. After all, we're at the very beginning of this adventure.
Everyone loves a great lie. 👍
Nice ,but too long !! 😊