Is Norway's success a model for Canada
Because of its development of oil & gas reserves, not its form of government
Norway is often presented as an example of the success of Democratic Socialism compared to “unfettered” capitalism. Norway’s success is not really debatable.
But is it the form of government that gave rise to Norway’s success? That is worth exploring.
The left wing of North American politics likes to misuse the world “socialism” by modifying it with the word “Democratic” as if that changed its meaning. It does not. Socialism is state control or regulation of the means of production and distribution and Democratic simply means “elected by the people”. Democratic Socialism is an oxymoron, since state control of industry is the opposite of the freedoms we associate with democracy.
Neither Norway nor Canada have government ideologies that can be described fairly as Democratic Socialism. The Liberal and New Democratic Party politicians in Canada would would like to turn Canada into an authoritarian socialist state and think soft pedaling the word “socialism” may encourage people to embrace this toxic Marxist ideology which is responsible for millions of deaths and the failure of major economies throughout history.
Norway is a country of 5.3 million people with oil reserves of 5.3 billion barrels. Energy comprises 40% of Norway’s exports and 17% of Norway’s GDP. That contribution to Norway’s GDP is more than double what the energy industry contributes to Canada’s GDP and more than five times that figure for the United States.
The petroleum industry alone is the largest part of Norway’s energy industry, contributing 20% of the State’s total revenue. In local currency, petroleum is expected to yield government revenue of 277 Billion Krone in 2023, equivalent to $39 billion Canadian dollars.
Norway’s government revenue per capita from the oil industry is about $7,500 per person. Those funds complement Norway’s 38% income tax rate and permit the country to afford the many benefits listed in the first chart of this article.
Socialism is no guarantee of common sense. Venezuela has the largest oil reserves on the planet with almost 300 billlion barrels of reserves and a population of 29 million. You would expect Venezuela to have government revenues and programs that make Norway’s regime look paltry. But, Venezuela also has a communist government.
Owing to poor government policies, the economy of Venezuela is in chaos with rampant poverty, high inflation and near starvation for many of its citizens. Leadership and form of government matters and Venezuela is just one of many examples of the failure of socialist regimes to provide sensible leadership. Instead, that country is infected by corruption, mismanagement and a transfer of wealth to the elite rulers at the expense of ordinary citizens.
So is Canada heading towards an outcome similar to Norway or to Venezuela? You don’t need to be a genius to see that unfold, and it is not pretty.
Canada’s oil & gas industry pays about $25 billion annually to Canadian governments, or about $650 per Canadian. While Norway has 5.3 billion barrels of oil reserves, Canada has 171 billion barrels according to government data.
If Canadian policy makers developed our oil & gas reserves and applied the same tax and royalty regime as Norway, Canadians governments would receive $33,000 per Canadian from our industry. $33,000 per capita is $1.3 trillion. That level of economic benefit is enough to eliminate income taxes in their entirety and put an end to government borrowing.
Why is Canada so inept at developing its resources?
The answer is the Trudeau government’s incessant use of a specious “climate change” alarm to rally popular support for its regressive policies which it hopes will perpetuate their socialist agenda and gradually impose outright socialism on Canada. That seems to be the objective of the American Democrats as well. Who can vote against a party that wants to “save the planet”? Leave aside the obvious fact that total elimination of Canadian oil & gas production would do little to reduce emission globally even in the “global warming” theory held water. In another article, I have set out some of the reasons the “global warming” theory lacks substance.
Canadians need to know what stupidity at the ballot box costs them plenty, and voters need to come to their senses. Trudeau seems little more than a puppet for Gerry Butts, his principal advisor, who many think is both a communist and the power behind the throne in Ottawa. I have no doubt that Butts believes Canada would be better off as a socialist autocracy. He is smart and machiavellian and his stamp is on all the divisive policies coming out of Liberal Ottawa under Trudea - claims of “system racism”, an outright attack on the vital energy industry in Alberta and Saskatchewan, pandering to Quebec, and profligate government spending.
Unless voters get rid of both Trudeau and Butts, Canada is in trouble. You can vote Canada into socialism but if you do, you will have to shoot your way out.