Skip to comments.End of oil boom threatens Norway's welfare model
Posted on 05/08/2014 10:25:10 PM PDT by blueplum
(Reuters) - Norway's energy boom is tailing off years ahead of expectations, exposing an economy unprepared for life after oil and threatening the long-term viability of the world's most generous welfare model.
High spending within the sector has pushed up wages and other costs to unsustainable levels, not just for the oil and gas industry but for all sectors, and that is now acting as a drag on further energy investment. Norwegian firms outside oil have struggled to pick up the slack in what has been, for at least a decade, almost a single-track economy.
:snip: "In Norway, job security seems to be taken for granted, almost like it's a human right to have a job," says Hans Petter Havdal, CEO of car-parts maker Kongsberg Automotive.
Kongsberg Automotive has only 5 percent of its workers left in Norway, having moved jobs to places like Mexico, China and the United States, and keeping only high-tech, automated functions at home. It says it is struggling with high labor costs and even problems such as excessive sick leave.
"It's a bit discouraging that the sick leave in Norway is twice the level of other plants," Havdal said. "That is to me an indication that something is not as it should be."
(Excerpt) Read more at reuters.com ...
end of party. heads will roll.
What would their muslim hordes do after EBT card shutdown?
The problem with socialism is you eventually run out of oil!
To paraphrase Margaret Thatcher, socialism works until the external economic resources are exhausted, then socialism’s unsustainable nature becomes undeniable. I would add that supporters of socialism will then complain that they just lacked sufficient resources to make it work, if only they had enough time, Utopia could have been achieved. This was in fact the lament of the left in the west when the USSR collapsed.
This is a problem with any country that relies on the export of its natural resources, instead of relying on the ingenuity and efforts of the only real and sustainable resource - its people and what they have “invested” in themselves. There’s a lesson to be learned here, somewhere...
oil is a renewable resource, but that’s not the point here, the point is socialism doesn’t work, never has, never will.
To norwegans: Bwahahahahahahahahahahahahaaaaaaaaaaaaaaaaaaa...time to pay the piper.
Socialism fail: status: inevitable
When talking about national oil companies, in this case Norway's national oil companies, there are different models. So Brazil is expanding their national oil company to mimic the Norwegian model. The Russian national oil company(s) is very different from the Soviet National oil company. The US doesn't have a national oil company and lets other national oil companies into the US to compete with our private sector oil companies.
Russia is allowing Exxon into an joint venture with Rosneft on Russian oil and gas, but BP owns part of Rosneft. In return, Exxon is allowing Rosneft a joint venture position in their holdings in Alaska, Texas, and the gulf of Mexico.
Mexico has been trying for 20 years to modify their national oil company to allow foreign investors but that has been politically difficult. Supposedly, Mexico has now made the adjustments to allow the foreign investments.
I love this. My niece is married to a smarmy, know-it-all Norwegian commie who , at 31, has never worked a day in his pathetic life. I would love nothing more than for the teet to dry up on his lazy a$$.
Yep its almost an epidemic here in Norway. I recently read a report that said nearly 30% of Norwegian youth (under 30) are on some kind of gov’t assistance program. The shocking part is that most of them come from middle to upper class families.
Where does the slacker live?
Eventually you run out of other peoples’ money.
He fancies himself as an academic and spends all his time at the university or at his collective with his other commie friends. They *think* they are anarchists, if you can imagine. I think he's some sort of spray painter too.
He is such an a-hole. They recently visited my sister in Fla. and unexpectedly other family came into town. So, my sister moved them out of the spare room and onto the couch to offer up the bedroom to my brother. He blew a gasket that they were forced to give up the room. Who acts like that? Complete entitlement mentality.
Thanks, I rarely go to UiO or Commie coffeehouses but I’ll try to avoid him.
Actually, I think you are THE anomaly. My guess is you could throw a kronor in any direction is Oslo and hit a guy just like this.
but Star Trek is a socialist society and it survives into the 28th century ;-P
New worlds for the Federation to induce to come into their monetary union so the central bank can inflate the currency and the governments of all member star systems get to participate in the illicit fruits that flow from having a far larger pool of private wealth from which to embezzle by dilution.