I usually just browse these boards for updates on the lates political issues in the US, but as the economic system of my own country came up in this discussion I felt like contributing for once
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Originally Posted by Ustwo
I used to have a good number of friends from Norway. Thanks to the 'controled' economy they drive to Sweden to buy food because its cheaper. Think about that, Sweden, not exactly a low rent nation, was cheaper to buy food. Controlled economies are just that, controlled, devoid of freedom, and punitive.
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Yeah, there are some who live near the Swedish border. We call them the Harry*-shoppers. They drive several hours to save a few crowns (kroner) on alcohol and meat because Sweden (a country much more suited for agriculture) has cheaper meat, and while alcohol is also quite heavily taxed in Sweden, it's not as heavily taxed as in Norway. The Swedish Crown is also worth slightly less than the Norwegian (10 Swedish are worth about 9 Norwegian) While it is not a totaly uncommon practice, people who regularly go to Sweden to buy food are considered cheapskates.
(*Norwegian slang for corny)
Now, there are many different reasons why things in Norway are taxed as they are. The thing that foreigners usually finds the most shocking is the alcohol taxes. The average price for a shot (2cl if i remember correctly) of whiskey in a Norwegian bar is about 10$ and up. (10$ = about 63 Norwegian Crowns) A pint of beer is from 5$ and up, usually costs around 8 or 9 dollars. The reason for this tax a historic unholy alliance between the labour movement and the born-again christian movement which both began in the latter part of the 1800's. Both movements saw the Norwegian drinking culture and widespread alcoholism as a major problem and one of the greatest obstacles to ending poverty. So both movements preached abstinece, and later when both movements had become major parties in the Norwegian Congress (Stortinget) they prohibited the sale of alcohol for a few years, before creating a state controlled alcohol monopoly (Vinmonopolet) and introducing heavy taxes to all alcoholic beverages (as well as eventually making advertisement for alcohol illegal).The alcohol taxes are quite unpopular and moonshine is common outside the major cities, but so far only the far right "Progress Party" is interested in cutting them, as most Norwegians have no problem paying what it costs to get drunk.
And that's really why it is so expencive to live in Norway, because in most cases, we can afford it. Food costs quite a bit as toll barriers protect the Norwegian farmers who expect to be paid according to a national average, even though the climate and the landscape of Norway is not exactly suited for farming. If it wasn't for the toll barriers there would be next to no land based foodproduction in Norway and the Norwegian countryside would be left to overgrow, and Norway would be extreamly vulnerable to food blockades, as it has indeed been in the past (esp. during the Great Nordic Wars 1700-1721 and the Napoleonic Wars).
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Originally Posted by stevo
when I read that article I wondered how much norwegians are taxed, and a guess is that it is at least 50% if not higher.
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We pay about 30something% and up in a typical progressive tax system. Less taxes for the poor, more taxes for the rich. It's quite a lot, but then again we have well funded public schools and free health care, and a generous welfare system.
My countrys economic system is far from perfect, but from in my current situation (20 year old university student) I'm thankfull for the generous statebacked student loan which togeather with a small part-time job gives me full financial independence as well as a "little extra" for luxury and entertainment.
(I hope there aren't too many gramatical errors and spelling errors, as it's 4am here and I have a slight dyslexia)