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Bad, bad, economics from the TUC

Actually, just bad history:

The Norwegian people now own one of the world’s largest investment funds – so big that it provides a fifth of the nation’s budget year on year. This is in large part because it directed profits from its North Sea oil and gas fields into a sovereign wealth fund. The UK could have done the same. But we allowed private companies to take all the profit.

No, not really.

Tax on UK N Sea oil wasn’t markedly different from Norwegian tax on N Sea oil. Not per barrel – but there were, relative to population, vastly more barrels available to the Weegies.

The other big difference is that the Weegies saved it all – absolutely none of it was spent in the domestic economy. Brits spent the cash in the domestic economy. Rewind to the 70s and 80s. Would it have been politically possible to insist that N Sea oil tax revenue not be spent in the UK economy?

No? Then the current if onlys aren’t being historically accurate, are they?

6 thoughts on “Bad, bad, economics from the TUC”

  1. True Tim.

    I’m thinking of Queensland. Under the reign of Bjelke the Bestial, the Qld government did its best to encourage businesses, especially miners, to invest. The loot, apart from that used to build dams, was used to reduce state taxes on we Queenslanders.

    But once the evil and corrupt Nationals were booted out, the bureaucracy was enormously expanded, as were the handouts. Meanwhile the revolting rape of the environment by the capitalist profiteers was subject to strict regulation.

    Oddly enough, the state government is now strapped for money. And of course it’s agreed to house the next Olympic Games!!!!!!!

  2. Today’s problems are land of milk and honey stuff compared to the 70s. Without the immediate infusion of income from North Sea Oil back then we may not have make it.

  3. The Norwegian people now own one of the world’s largest investment funds – so big that it provides a fifth of the nation’s budget year on year.

    Not surprisingly it’s taken a big hit this year, I wonder how it will do in the next couple.

    And the Norwegian people don’t own shit. The government takes the oil and gas (licence?) revenue and hands it to a corporation to invest abroad on its behalf. Some of the returns come back to the government to spend on governmenty things. I’m not saying this a bad thing for the Noggies to do (probably pretty sensible for a small population with a high value temporary windfall), just that the citizens have no ownership.

    As they’re scandies this will all probably work well for quite a while, but governments being governments, and corporations being corporations, I can’t escape the feeling that it’s just a long term way of pissing all the money away.

    Oh look:

    https://edition.cnn.com/2022/09/20/investing/norway-wealth-fund-net-zero-climate/index.html

    Virtue-signalling moral money-laundering takes precedence over reliable investing.
    Aaaand, it’s gone.

  4. Locally you can only by car insurance from the government owned corporation. Not surprisingly in a monopoly situation insurance is high (though the additional charge for under 25’s is very cheap). Government use it as a piggy bank when it suits them so they can pretend they aren’t spending taxpayers money and the periodic reviews consistently report it’s top heavy with excessive administration and provides poor customer service.

  5. Bloke in North Dorset

    BNiC,

    Presumably the providing senior jobs and sinecures for retired politicians and favoured friends is left unsaid?

    Ditto providing jobs in marginal constituencies of the ruling party?

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