Tag Archives: economy

Sticker Shock! The Cost of Living in Norway

by Carrie Levesque

220px-The_Scream

Edvard Munch “The Scream” (1895).

When I first moved to Norway and started brainstorming blog topics, I knew I had to write one on the cost of living, a matter that shocked me daily our first month here and still manages to shock me seven months in.  Sure, I’d heard talk of Norway as one of the most expensive countries in the world, but talk does little to prepare you for the reality of a $7 carton of eggs, a $4 half-gallon of milk or chicken at nearly $10 per pound.

I was also quite surprised at my options the first time I needed cash.  The smallest withdrawal you can make at a Norwegian ATM is the equivalent of 70 US dollars.  The next smallest amount: $175.  Norwegians walk around with some serious Benjamins in their pockets (or Munchs, as the case may be).  Norwegian expressionist painter Edvard Munch’s image graces the 1000 kroner ($175) banknote.  I suspect his famous painting The Scream, thought to represent “the universal anxiety of modern man,” in truth depicts the anxiety of foreigners shopping for necessities in Norway (I just paid WHAT for that?).

1000 Kr Note With Portrait of Edvard Munch

1000 Kr Note With Portrait of Edvard Munch

But over the last few months, I’ve adjusted and mostly started to see things more as the locals do.  As a Scottish friend who’s lived here 11 years recently advised me, “Never complain to Norwegians about how expensive things are here- that’s just BORing!”

American translation: “It is what it is, so it’s stupid to complain about it.”

And she’s right.  After researching on the web, not entirely successfully, why the cost of living in Norway is so high (it’s more than just the high taxes), I came across more interesting perspectives on Norway and its economy.  Like how it is, at a time when the rest of the world is flailing through a seemingly interminable economic crisis, the Norwegian economy is going strong.  Unemployment is around 3%.  Real estate prices are on the rise.   Signs of poverty are extremely hard to find in this country, where everyone gets a good education and there are no low-wage jobs.  (Go on, take a moment to absorb that: There are no low-wage jobs in Norway.  Entry-level jobs pay about the equivalent of $50,000/year).  What gives?  Yes, those massive state oil revenues play a large role, but they don’t tell the whole story.

Norway owes much of its success to its fervent national pride (which could just as easily be a liability, but so far, so good) and a strong sense of responsibility toward the common good.  On the world stage, Norway largely goes its own way.  Having gained its full independence only in 1905, Norway has twice voted against joining the European Union.  After 400 years of Danish-Swedish subjugation, Norwegians have little enthusiasm for any further “unions.”

Even Storm Troopers are Norwegian Patriots

Even Storm Troopers are Norwegian Patriots

While other oil-rich European nations blew through their massive surpluses during the boom years, Norway stood mostly alone, saving up one of the world’s largest sovereign wealth funds.  Though oil revenues represent about 20 percent of government revenues, only 4% of that money is allowed to be spent on current needs, while the rest is banked for that rainy day when the oil runs out.  Saving for the future, what a novel idea!

Norwegian Currency

Norwegian Currency

Speaking of banking, another way Norway bucks the international trends and exhibits a concern for societal stability: According to the New York Times, “banks represent just 2 percent of the economy and tight public oversight over their lending practices have kept Norwegian banks from taking on the risk that has brought down” other European counterparts (“Thriving Norway Provides an Economic Lesson”).  Compare this to the US, where business media reported last April that America’s five largest banks held assets equal to 56% of the US economy (“Big Banks: Now Even Too Bigger to Fail“).   Yeah, that’s been working out pretty well.

Norwegians appreciate that they got lucky when oil was discovered offshore in the late 1960s, and they take very seriously the need to manage well this relatively newfound wealth.  Norwegians feel, “If you are given a lot, you have a lot of responsibility” (New York Times).  Reading through some of the highlighted comments on the Times article, certain phrases jumped out at me as being highly representative of Norwegian values: caring about “greater social good through delayed gratification” and the belief that “Everyone deserves to live as concern-free as possible.”  By managing their wealth well now and not binding their economy too tightly to anyone else’s problems, Norwegians have created a system whereby living within their means today helps to ensure security for future generations.

And so far, that’s working out pretty well for them.

Environmentalism and the Future

by Matt McKinnon

Let me begin by stating that I consider myself an environmentalist.  I recycle almost religiously.  I compost obsessively.  I keep the thermostat low in winter and high in summer.  I try to limit how much I drive, but as the chauffeur for my three school-age sons, this is quite difficult.  I support environmental causes and organizations when I can, having been a member of the Sierra Club and the Audubon Society.

1I find the arguments of the Climate Change deniers uninformed at best and disingenuous at worst.  Likewise, the idea of certain religious conservatives that it is hubris to believe that humans can have such a large effect on God’s creation strikes me as theologically silly and even dishonest.  And while I understand and even sympathize with the concerns of those folks whose businesses and livelihoods are tied to our current fossil-fuel addiction, I find their arguments that economic interests should override environmental concerns to be lacking in both ethics and basic forethought.

That being said, I have lately begun to ponder not just the ultimate intentions and goals of the environmental movement, but the very future of our planet.

Earth and atmospheric scientists tell us that the earth’s temperature is increasing, most probably as a result of human activity.  And that even if we severely limited that activity (which we are almost certainly not going to do anytime soon), the consequences are going to be dire: rising temperatures will lead to more severe storms, melting polar ice caps, melting permafrost (which in turn will lead to the release of even more carbon dioxide, increasing the warming), rising ocean levels, lowering of the oceans’ ph levels (resulting in the extinction of the coral reefs), devastating floods in some places along with crippling droughts in others.

2And according to a 2007 report by the Intergovernmental Panel on Climate Change, by 2100 (less than 100 years) 25% of all species of plants and land animals may be extinct.

Basically, our not-too-distant future may be an earth that cannot support human life.

Now, in my more misanthropic moments, I have allowed myself to indulge in the idea that this is exactly what the earth needs.  That this in fact should be the goal of any true environmental concern: the extinction of humanity.  For only then does the earth as a planet capable of supporting other life stand a chance.  (After all, the “environment” will survive without life, though it won’t be an especially nice place to visit, much less inhabit, especially for a human.)

3And a good case can be made that humans have been destroying the environment in asymmetrical and irrevocable ways since at least the Neolithic Age when we moved from hunter and gatherer culture to the domestication of plants and animals along with sustained agriculture.  Humans have been damaging the environment ever since.  (Unlike the beaver, as only one example of a “keystone species,” whose effect on the environment in dam building has an overwhelming positive and beneficial impact on countless other species as well as the environment itself.)

4So unless we’re seriously considering a conservation movement that takes us back to the Paleolithic Era instead of simply reducing our current use and misuse of the earth, then we’re really just putting off the inevitable.

But all that being said, whatever the state of our not-too-distant future, the inevitability of the “distant future” is undeniable—for humans, as well as beavers and all plants and animals, and ultimately the earth itself.  For the earth, like all of its living inhabitants, has a finite future.

Around 7.5 billion years or so is a reasonable estimate.  And then it will most probably be absorbed in the sun, which will have swollen into a red giant.

5(Unless, as some scientists predict, the Milky Way collides with the Andromeda galaxy, resulting in cataclysmic effects that cannot be predicted.)

At best, however, this future only includes the possibility of earth supporting life for another billion years or so.  For by then, the increase in the sun’s brightening will have evaporated all of the oceans.

6Of course, long before that, the level of carbon dioxide in the atmosphere (ironically enough) will have diminished well below the quantity needed to support plant life, destroying the food chain and causing the extinction of all animal species as well.

And while that’s not good news, the worse news is that humans will have been removed from the equation long before the last holdouts of carbon-based life-forms eventually capitulate.

(Ok, so some microbes may be able to withstand the dry inhospitable conditions of desert earth, but seriously, who cares about the survival of microbes?)

Now if we’re optimistic about all of this (irony intended), the best-case scenario is for an earth that is able to support life as we know it for at most another half billion more years.  (Though this may be a stretch.)  And while that seems like a really long time, we should consider that the earth has already been inhabited for just over 3 and a half billion years.

So having only a half billion years left is sort of like trying to enjoy the last afternoon of a four-day vacation.

7

Enjoy the rest of your day.