Norweigan oil fund • Hacker News Board

Re: Norweigan oil fund

#11

Post by kingkawn » Thu, Aug 01, 2019, 2:26 PM UTC

skj wrote: post #6

BluffFace wrote: post #3

Earlier quoted context omitted.

Perhaps this is why they can afford many government programs that the US simply cannot. Without a prolific income stream comparable to Norwegian oil, the only way to provide more social services is to tax individuals and businesses harder. Tax any group too heavily and you create brain drain, which hurts in the long run.

Without advocating taxing any group too heavily, is there any evidence that this practice has ever created a brain drain?

Just anti-tax propaganda

Re: Norweigan oil fund

#12

Post by vonseel » Thu, Aug 01, 2019, 2:26 PM UTC

BluffFace wrote: post #3

cheeky78 wrote: post #2

Isn't this contributing to climate change? The economy everyone uses as an example to replace the current system in the US...

Perhaps this is why they can afford many government programs that the US simply cannot. Without a prolific income stream comparable to Norwegian oil, the only way to provide more social services is to tax individuals and businesses harder. Tax any group too heavily and you create brain drain, which hurts in the long run.

You hit the nail on the head. Half-Norwegian here. Locals all speak of the oil as a gift to Norway from the seas/God/whatever.

An economic analysis in comparison to Finland and Sweden would be interesting.

Re: Norweigan oil fund

#13

Post by [deleted] » Thu, Aug 01, 2019, 2:26 PM UTC

philip1209 wrote: post #5

cheeky78 wrote: post #2

Isn't this contributing to climate change? The economy everyone uses as an example to replace the current system in the US...

The fund started with oil money, but now focuses new investments on renewable energy sources: https://www.wsj.com/articles/norways-sovereign-wealth-fund-b...

[deleted]

Re: Norweigan oil fund

#14

Post by panpanna » Thu, Aug 01, 2019, 2:27 PM UTC

> On average, the fund holds 1.4 percent of all of the world’s listed companies.

Why fund businesses in other countires? Shouldn't Norway try to set up some more industries at home?

Everyone claim Europe (was: EU) needs more VC funding to stop the brain drain. Well, here is a huge pool of money just waiting to be spent

Re: Norweigan oil fund

#15

Post by Keyframe » Thu, Aug 01, 2019, 2:27 PM UTC

What's the percentage of all US stocks fund owns?

Re: Norweigan oil fund

#16

Post by ceejayoz » Thu, Aug 01, 2019, 2:28 PM UTC

BluffFace wrote: post #3

cheeky78 wrote: post #2

Isn't this contributing to climate change? The economy everyone uses as an example to replace the current system in the US...

Perhaps this is why they can afford many government programs that the US simply cannot. Without a prolific income stream comparable to Norwegian oil, the only way to provide more social services is to tax individuals and businesses harder. Tax any group too heavily and you create brain drain, which hurts in the long run.

The US produces 10x the oil Norway does, and was producing significant amounts of oil as far back as the 1860s.

We've had that profit stream, we just let it get captured by private corporations (or in Alaska's case, given away to garner votes).

Re: Norweigan oil fund

#17

Post by hackathonguy » Thu, Aug 01, 2019, 2:28 PM UTC

"On average, the fund holds 1.4 percent of all of the world’s listed companies."

This blew my mind.

Re: Norweigan oil fund

#18

Post by punnerud » Thu, Aug 01, 2019, 2:28 PM UTC

thatguyagain wrote: post #8

BluffFace wrote: post #3

Earlier quoted context omitted.

Perhaps this is why they can afford many government programs that the US simply cannot. Without a prolific income stream comparable to Norwegian oil, the only way to provide more social services is to tax individuals and businesses harder. Tax any group too heavily and you create brain drain, which hurts in the long run.

Their income tax is 22% if I'm not mistaken.

Sales tax is 25% (lower on food + public transport). Income tax is close to 50% for most of people (progressive), in addition there is a 14% tax per employee that the companies have to pay. If you take out dividend there is a 25% tax that don't earn you pension.

Re: Norweigan oil fund

#19

Post by utopian3 » Thu, Aug 01, 2019, 2:29 PM UTC

panpanna wrote: post #14

> On average, the fund holds 1.4 percent of all of the world’s listed companies. Why fund businesses in other countires? Shouldn't Norway try to set up some more industries at home? Everyone claim Europe (was: EU) needs more VC funding to stop the brain drain. Well, here is a huge pool of money just waiting to be spent

The point is diversification. If norway’s economy collapses, they’ll still be invested elsewhere. It’s financially unwise to keep all your eggs in one basket

Re: Norweigan oil fund

#20

Post by sct202 » Thu, Aug 01, 2019, 2:29 PM UTC

panpanna wrote: post #14

> On average, the fund holds 1.4 percent of all of the world’s listed companies. Why fund businesses in other countires? Shouldn't Norway try to set up some more industries at home? Everyone claim Europe (was: EU) needs more VC funding to stop the brain drain. Well, here is a huge pool of money just waiting to be spent

Norway isn't in the EU, so that wouldn't exactly be home for them either.