March 25, 2013

DEFINE THE CONTRIBUTION INSTEAD OF THE BENEFIT:

Sitting on too much money, Norway risks going off course (Balazs Koranyi and Victoria Klesty, Mar 24, 2013, Reuters) 

Middle East-style oil wealth combined with a generous Nordic welfare model is slowly throttling big chunks of Norway's economy, threatening western Europe's biggest success story.

On the surface, Norway is the envy of the world: growth is strong, per capita GDP has exceeded $100,000 and the nation sits on a $700 billion rainy day cash reserve, or $140,000 per man, woman and child.

But it may just be too much money as Norwegians, more keen on leisure and family life are working less and less. [...]
Wage costs are up 63 percent since 2000, about six times more than in Germany or Sweden, while the employment rate, adjusted for part time work, is 61 percent, below rates anywhere in the Nordics and even below Greece, the central bank says.

Still, unemployment is a barely visible 3 percent as more prefer part time work. [...]

With a budget surplus worth 12 percent of GDP, Norway can afford just about anything now but unless it scales down benefits like neighbor Sweden did in the 1990s, that surplus will melt away.

They particularly need to give the young their money up front so that their savings mean they wont have to--nor be able to--tap into welfare later.

Posted by at March 25, 2013 9:01 PM
  

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