Earlier quoted context omitted.
Agreed, it is not sustainable. Alaska put themselves in this situation by growing government whenever oil prices were high without any regard to oil prices dropping. There was an opportunity to build Alaska wealth without taxes but I feel the time has passed. If Alaska had instead taken the 75% share of oil revenue allocated to government and invested it the same as the people's portion they wouldn't be in this situa…
>The entire historical debacle just illustrates in vivid color how horrendous politicians are at managing money. This is not true everywhere. Norway has a sovereign wealth fund that is doing quite well. Libya was once the most prosperous African nation before the US demolished their government. Sovereign wealth funds are an effective management strategy for the resource curse, if western nation backed multinational c…
20% of Norway's GDP comes from oil revenues (the government owns the oil extraction business). It remains to be seen how things would go if their oil revenues ceased.