Excerpt of the Day (Monday)

True, the tax rate in Norway is about 50% (The U.S. tax rate from all levels of government is either the lowest or near the bottom of tax rates among all industrialized nations - approximately 30%). What does that buy for the Norwegian population?

A government payment of around $2,000 a year for every child under 17 in the family (how’s that for "family values?"). The more kids you have the higher the stipend and if you live in rural areas, it’s higher yet. (How’s that for supporting "family values" and traditional farming?)

1. Retirement pay for housewives equal to that of industrial workers. (How’s that for really valuing the work that mothers do?);
3. A $200 annual deductible for ALL medical costs, no matter what;
4. 2 weeks of fully subsidized maternity leave;
5. totally paid "sick leaves" for up to 2 weeks;
6. Totally free education from pre-school through college;
7. Restrictions on the pay of CEOs;
8. Strict workplace safety rules that are enforced.

The list is almost endless. So two questions arise? First, how is their economy doing this with such a heavy tax and governmental regulatory burden? Yes, in part it is the result of the large part oil plays in their economy. But in most countries with such a large oil blessing, the money goes to either huge corporate profit, a fascist like dictator or a small royal clique. In Norway, that money goes into The Petroleum Fund of Norway that is invested in eco-friendly projects and the proceeds are distributed throughout the population (somewhat in the way the State of Alaska does it). As Daniel Gross says in his analysis of Norway’s economy, it is meant to "insure the equitable distribution of wealth across generations." (Gross, 2004) It also helps insure low inflation, low unemployment, and zero national debts.

The second question are why do the Norwegians stand for such high taxes and so much government interference in their economy, being such individualists? Youssef Ibrahim, in a New York Times article on Norway, points to the Norwegian "national character," which among other things includes a very bad taste for elitism, for great wealth and for great poverty. "Norwegians have a word for their anti-elitist views, Jantelaw, which means nobody should start thinking he or she is better than anybody else." (Ibrahim 2003, A8)