Ken Hanly says to me > Recently Trond Andresen wrote: > Among several things, we discuss the extreme gvt. surplus in the current > Norwegian economy, and how the economics profession in Norway now is at > work to explain that this money may not be used for the public good in > Norway, but must be invested financially overseas; a "Kuwait > syndrome". > > Comment: I understood -at least before the war with Iraq--Kuwait had a > social safety net that would be the envy of most countries around the world. > For example they had a first rate health care system available to all > CITIZENS. However, most residents of Kuwait were not citizens e.g. Iraqi and > Palenstinian guest workers; and the whole > system depends upon the whims of a paternalistic and rich absolute ruler, > but I would think that Kuwait is not the best example of overseas investment > AT THE EXPENSE OF THE WELFARE STATE. Also, much of the surplus is squandered > in lavish lifestyles as part of the global jet-set rather than in investment. No disagreement with this. My point is that while mainsteram economists in most countries have to explain to the public that the gvt. "cannot" run a deficit, they in Norway have the much more tricky task to explain that the gvt. HAS TO run an extremely large SURPLUS. And this in a situation where gvt. net financial assets are around 280 billion NOK already. The projected 1996 surplus is 55 billion NOK, and will be even higher in 1997. Norway's population is 4.3 mill., and 1 NOK = 6.5 USD Trond Andresen
