by Norway turns neoliberalism and neoclassical economics on its head. It does the opposite and yet it's the best place on Earth to live.All the incentives we are told about in neoclassical economics are not apparent. The cost is living is higher, probably because the wages of the poorest are pretty good, which will will increase prices. On average, those at the top earn 4 x more than those on the bottom, so when going for a meal the restaurant staff will be earning a fairly good wage. The Norwegians don't mind this because the welfare state means they have no worries too. Life is good!The oil helps a bit, though, but even here, it was invested very wisely, unlike in the UK. [embedded content]
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
Mike Norman writes Trade deficit
Mike Norman writes Bond market now pricing in one 25 bps rate cut by Fed in 2025
New Economics Foundation writes What are we getting wrong about tax
Sandwichman writes The more this contradiction develops…
All the incentives we are told about in neoclassical economics are not apparent. The cost is living is higher, probably because the wages of the poorest are pretty good, which will will increase prices. On average, those at the top earn 4 x more than those on the bottom, so when going for a meal the restaurant staff will be earning a fairly good wage. The Norwegians don't mind this because the welfare state means they have no worries too. Life is good!
The oil helps a bit, though, but even here, it was invested very wisely, unlike in the UK.