Teeqoz said:
You finally made me post here because there are so many half truths and falsehoods in this post that I had to address it... The oil industry makes up 14% of GDP and 19% of government tax revenue, plus a few percentage points for offshore service industry. (https://www.norskpetroleum.no/okonomi/statens-inntekter/) Of the many oil companies that operate in Norway, the government has a significant ownership in one of them (Equinor), where they own 67%. In addition, over 50% of petroleum exports from Norway aren't oil, but natural gas, where the price has fallen much less. |
Sorry, got some figures jumbled up, oil and gas provide roughly 35% of the state's income (oil alone is just under 22%), but not nearly as much GDP. My mistake. My point wasn't the figures themselves though, but rather the potential consequences of the state losing massive income rather than private interest, and that this loss is offset further due to the immense productivity and profit per capita and employee that this sector allows. In other words; the private sector losing relatively few jobs and a large income is more desired than the state losing relatively few jobs and a large income.
Half-truths and falsehoods, again, I messed up the numbers. My biggest concern right now is whether the ongoing crisis will deplete more of the oil fund and cause issues a couple of decades from now (eldrebølgen) since these are basically future pensions and state commitment to a massive public sector with fairly highly paid administration and other groups making up an unusually large percentage of it (presenting problems in profitability and productivity per capita).
Norway's economy is deemed highly stable and has been for a long time, in no small part due to clever investment and good economical equilibrium between the public and private sector, but its biggest weakness is the relative level of wages and income across a workforce that is both lacking actual contribution is production and industry as well as employed within the public sector in very high numbers. My parents happen to be in the middle of the generation that will see the biggest impact of these potential weaknesses, especially if and when a prolonged shutdown and subsequent economic downturn forces the government to forego their percentage rules on expenditure covered by the oil fund (handlingsregelen).
But we digress (at least somewhat).
Edit; sorry, wrong again, petroleum makes up 37% of the total export value for the state (I'll leave the original to show my error). The number was backward, but the point still stands (and, it's not a criticism of Norwegian policy, although you seem to interpret the whole thing as such, it's merely an expressed concern from a fellow citizen).
