Why is NORWAY so RICH? – VisualPolitik EN
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Why is NORWAY so RICH? – VisualPolitik EN

Is there someone controlling global capitalism behind the scenes? You’ve heard about the Reptilians, the Rothchild
family, even George Soros… but there is one player with much more power than any of
these guys… and nobody has ever told you about it: the Government of NORWAY. Yes, Norway is way more than just a very rich
country… its government has a real sway on international businesses… Think I’ve gone nuts? Well, at the end of this video, you’ll see
where I’m coming from. Norway is the only country on the planet where
Satanic Black Metal songs are on the Billboard charts. Yes, my dear viewer, if you ever travel to
this country and turn up the radio, you might not find yourself listening to Taylor Swift
but, instead, bands like GORGOROTH, MAYHEN or… LILLI MEISTER and her hit titled… MY ASS. Ahm… yes, I know, there is something pretty
weird going on in this country. But the truth is, Norway is one the wealthiest
countries on the planet, playing on the same league as Ireland and Switzerland. But not only that! They are also one of the most equalitarian. This means that the differences between rich
and poor are pretty subtle. Their welfare state is big, their taxes are
high and their lifestyle is good. But you already know this. What you probably don’t know is that Norway’s
influence on the international economy is way bigger than it looks… Yes, Norway is on the backstage of the biggest
corporations on the planet… OK! OK! Don’t leave this video! I know what you’re thinking, and the answer
is NO! This video is not a crossover with Alex Jones! You see, Norway has a population of less than
5 million inhabitants. New York City is more populated than this. Nonetheless, these 5 million people have big
shares in the world’s major corporations. Yep! You heard that right! The Government of Norway has its own hedge
fund, and they are among the main shareholders in lots of companies like Apple, Facebook
and Tesla. So yes, Norway might not have a big military
but they have an army of money ready to influence the world’s economy. So the question now is… Why is Norway so Rich and powerful and…
how did they get here? At this point, you’re all thinking the same
word: OIL. And you are kind of right. Norway is one of the World’s largest oil
producers. But, they have nothing to do with the other
oil rich countries. Just look at this picture. Here you can see the skyline of RIYADH, Saudi
Arabia’s capital. It looks like a sci fy city, right? Skyscrapers, modern buildings and lots of
lights. Now let’s look at this picture of Oslo,
Norway’s capital. You can already see the difference, right? If you’ve been following VisualPolitik for
a long time, you already know that having oil is not the same as being rich. In fact, as you can see on this chart, Norwegian
crude oil is twice as expensive to extract as Saudi oil. For a better understanding, most of the Norwegian
oil comes from the Nord Sea. And these oil beds are shared with other countries
like the United Kingdom. However, Norway has taken the most advantage
of that oil wealth. Oh! OK! Now you might be thinking, ‘Ah, another
VisualPolitik video where Simon tells us how Norway became so rich by privatizing companies! Right? Right?’ So… this time, the story is different. Norway is a great example of what we call
STATE CAPITALISM. So what is state capitalism? Why is Norway so rich and powerful? What does it mean for a government to invest
in the stock market? Today we are going to answer to all of these
questions but, before we do, let’s take a look back at history. THE DUTCH DISEASE We have to be honest here: Norway has never
been a poor country… but it wasn’t always a very wealthy one either. In the 50s, Norwegians enjoyed a lifestyle
similar to that of the French. This means, wealthier than the Spaniards but
poorer than their Swedish neighbours and, of course, the Americans. Back then, nobody expected Norway to have
oil. But things changed in the year 1959. In that moment, SHELL started prospections
in the Nord Sea. SHELL is an oil company in the Netherlands
and they were looking for potential oil beds in the shores of their country. One day… boom! They found some little gas sources. And whenever there’s gas, there is oil. So they kept up their exploration. And this is how one of the biggest oil fields
was discovered. An oil field situated under British and Norwegian
waters. During the 60s, Shell got drilling licenses
in those two countries. Years later, in 1972, the Norwegian Government
founded its own oil company: STATOIL. This is how the Nord Sea oil boom started. During the 70s, money flew into the country. In just 3 years, Norwegians doubled their
GDP per capita. All of a sudden, the Norwegian dream meant
working in the Dinosaur Juice industry. Who wants to fish for salmon when you can
make big bucks working with oil? It really sounds fantastic… right? Well… actually, NO. In fact, this phenomenon has a name. They call it the DUTCH DISEASE or the CURSE
of natural resources. Basically, anytime a country finds oil, its
economy goes nuts. The government can waste money while lowering
taxes. Citizens want to work in the oil industry
because it’s the most profitable and… What happens next? In just a few years, your economy makes just
one thing: Dinosaur juice. And when you depend so much on just one product,
a small change in the market price puts the whole country on the verge of bankruptcy. This is exactly what happened in Venezuela,
and what could happen in other countries like Saudi Arabia or Bahrain. And this was the big difference between Norway
and United Kingdom. Both countries had labour governments but
their policies couldn’t be more different from one another. In the year 1976, the UK was in the middle
of one of their worst financial crises. So the Government couldn’t wait to squeeze
that oil wealth for all it was worth. Norway, however, had a more stable situation
and they could wait. What does this mean? Well… first, the government put very strict
industry regulations in place. Plus, 50% of those oil rigs had to be in the
hands of the state owned company STATOIL. On the other hand, foreign companies had to
pay a 78% tax on the oil profits. And that’s not all! Norway put a limit on oil production. Just look at this chart. Here you can see how the UK kickstarted their
production from the very first time. At the end of the 70s, the British were already
producing more than a million and a half barrels a day while Norway was still at a third of
that. During the 80s, during the Margaret Thatcher
administration, the UK keeps pumping oil like there’s no tomorrow while Norway is still
pretty relaxed with production. What did they achieve by doing this? Norway was keeping all the productive economy
focused on oil. But wait a minute because there Is another
big difference! You see, during the 80s, Thatcher privatized
British Petroleum. Norway’s government, by contrast, has kept
control of STATOIL. Even today, despite the company changing its
name from STATOIL to EQUINOR, the State still owns 67% of the firm. And I know what you’re thinking of now… Oh my god! Norway is a socialist country! Hold on just a second. In fact, the Norwegian economic system is
pretty similar to that of China. This is what the experts call STATE CAPITALISM. This means, the State controls a good share
of the economy but… it behaves like a big private company. So what does this mean? Well… check this out. THE HEDGE FUND COUNTRY Before continuing, I should make an aside…
because this beautiful, romantic and sweet melody you’re hearing right now is the music
of… ENDEATHED! A Black Metal band that… OK, they aren’t from Norway, they’re from
Colombia but… it sounds just like a Norwegian band and they sent us their music for this
video! If you want to hear more of them, we have
a link to their channel in the description. Now, returning to our story… Remember those two Pictures I showed you at
the beginning of the video? Other countries like Saudi Arabia used their
impressive oil wealth to live like a hip hop artist on a Friday night. However, the different Norwegian administrations,
both labour and conservative, have measured every last penny they spent. What does this all mean? Their oil wealth went into a piggy bank. And this is how we go to the year 1990. In this year, Norwegian Parliament realizes
three things: 1. They have a lot of savings. 2. Oil market prices go up and down and they
cannot control that. 3. The best thing they can do is diversify their
economy. And how could they do that? Well… how about… investing in the stock
market? So, as we say here at VisualPolitik, as it
was said, it was done. This is how the Government Pension Fund of
Norway, also known as the Oil Fund, was created. This is a hedge fund controlled by the Norwegian
Central Bank. And yes, I know what many of you are thinking
now… What’s so impressive about that? There are many other countries with a Sovereign
wealth fund: China, Australia, the United Arab Emirates… of Course! But look, this one is the biggest of all of
them. We’re talking about more than 1 trillion
American Dollars. This means that if we divide this fund by
the entire Norwegian population, each citizen has more than 200 000 USD invested in stocks. But this is not the end of the story! According to the law, nobody can touch that
money for public spending. This means the Government can only use the
benefits of the fund, but not the capital. And believe me… we aren’t talking about
a tip here… How Norway’s sovereign wealth fund made
$130 billion in one year Also, according to the law, they cannot invest
in their local economy. Just foreign companies. This is why, Today Norway holds 1.5% of all
the stocks existing in the world. Of course, some years are better than others. And, according to many analysts, the management
of the fund is overly conservative and doesn’t make as much money as it could. But the truth is Norway doesn’t just use
this for diversification… the Oil Fund is also a political weapon. Norway’s $905bn oil fund flexes its shareholder
muscles World’s largest sovereign wealth fund opposed
6,700 company resolutions last year For example, every year, the Norwegian Central
Bank publishes a Black list with companies that they don’t invest in for ethical reasons. That includes weapon manufacturers, tobacco
producers and firms involved in corruption scandals. But this is just the beginning! You see, having stocks of a publicly traded
company gives you the right to participate in the shareholders meetings. You can vote on corporate decisions and even
suggest topics for discussion. The more stocks you have, the more important
you are in those meetings. Here’s an example. This summer 2018, Facebook started a new algorithm
to filter fake news. They are also starting to take the wage gap
seriously. These two decisions are the outcome of a shareholder
meeting. And guess who added these topics on the meeting
schedule? Of course, that would be Norway! And the same happens with other companies. Norway’s fund backs activists’ bid at Alphabet
meeting As you know, Alphabet is the conglomerate
that Google and YouTube are part of. A small group of shareholders wanted Google
to refine the fake news filter. And having the support of Norway’s fund
helped them win very crucial votes. The same happened with Apple. In this case, Norway is the 8th biggest shareholder,
with more than 9 billion USD invested. And they aren’t exactly silent in the shareholder
meetings. In general, Norway is pushing the biggest
world companies to change their corporate policies on many different fronts. Of course, there’s the gender gap but…
that’s not the only one! Part of the ‘Norwegian ideology’ focuses
on this too. Norway’s sovereign fund to focus on high executive
pay Exactly! In many ways, the big multinational executives
make big salaries despite the company losing Money. We’ve seen this several times during the
financial crisis. As you can imagine, shareholders of these
companies are not happy with this. But it’s hard to speak out when you only
hold a little share of the company. This is where Norway comes in as the loudspeaker
for small investors. Many countries try to control the World with
their militaries. Other countries try to sway foreign governments
with diplomacy. Norway tries to expand their influence on
the biggest global companies… this is the Norwegian conspiracy! Meanwhile, Norwegian citizens can sleep at
night knowing that, even if oil prices go down, they have their future quaranteed. And now it’s your turn… Do you think it’s a good idea for a whole
country to invest in the stock market? Do you think this Norwegian influence on global
capitalism is good or bad? Please, leave your answer in the comment section
below. Also visit RECONSIDER MEDIA.COM, the podcast
that provided the voices in this episode that were not mine. And don’t forget that we publish brand new
videos every week so subscribe to this channel and hit the bell button so you won’t miss
any posts. If you liked this video, give us a thumbs
up and, as always, I’ll see you next time.

About Bill McCormick

Read All Posts By Bill McCormick

100 thoughts on “Why is NORWAY so RICH? – VisualPolitik EN

  1. Great video! It’s too bad that the political undertones keep it from being awesome! The undertone of that crap undermines what has made Norway successful.

  2. OH, it's EASY TO SEE WHERE YOUR COMING FROM. However, now that Norway has come to the realization the socialism isn't working out so well so they had to reinstate capitalism to balance the budget and you left out the fact that after WW11 the American taxpayers were picking up the tab for their defense spending, I find your analysis a bit lacking.

  3. Didn't the virtuous Norwegians also prohibit their fund from investing in oil companies because of environmental concerns? Yep, pretty two-faced.

  4. Norway isn't fulfilling its NATO defense spending commitments. The US military should remove every last US tank from Norway. Then we'd see just how effective Norway's activism at Apple would be in saving their oil fund from Putin.

  5. Yet look what has happened with big tech's censorship: anything right of a narrow, far left viewpoint is demonitized or just removed. They decide what is fake news, what is hate speech, and what you are allowed to see.

    — I forgot the more important point: My ass, how long you think you last?

  6. Does the fund benefit individual Norwegians directly? I understand how it benefits their government – who in turn are supposed to benefit their citizens …but does every Norwegian receive a direct dividend?


  8. Are you guys also aware that The Netherlands has a 1.4 Trillion US Dollar Pension Funds? (That's more than twice the entire national debt of this country). Speaking about richness. And then I am only talking about Pension Funds.


  10. Yes the US could come in with its Military Might and take over Norway like taking Candy from a Kid on Halloween

  11. Wow, so glad Norway is supporting ethical causes and global growth! Real humanitarian country! If only America did the same with their capital… They could really change the world!

  12. America is rewriting its policy on foreign country that own shares in American companies, these policies will be looked at so that in the future no foreign government worker or agency can own shares especially when an individual or a group purchase shares that has misrepresentation of whom they really are and their intention on American investments. Change will be made so that no foreign government will be able manipulated our economy or have any demand to move a American company, this is to prevent US companies and intellectual property rights from getting highjack also where companies can be held hostage like many companies had this horrible act took place in Asia . this is to protect American interests and our economy

  13. any country can prosper easily given that the population is small and the resources great the likes of kuwait dubai and switzerland are good examples couple that with good governance and sound economic strategies and viola!

  14. The Norwegian wealth is an outcome of a two faced "neutral" policy post wwii.

    While Norway enjoys all the prosperity came by the US and the free world it declares it is "neutral" while knowing that if the Russkies will try to step in the US will prevent it. If that is the case, then why should Norway spent money on army? Let the American tax payer pay for the US army while the Norwegian take advantage of it.
    Not only that the Norwegians are leeches they also have the nerves to preach the world.

  15. Oils fucked the world, the human race is too corrupt to have a future, we won't be around for much longer, did you mention the Norwegian harp seal atrocities? All in the name of capitalism, actually all worldwide atrocities are made in the name of money, i hope we all fukn die soon, i don't see anything worth saving when it comes to the human race, all garbage, no matter where you're from, you're all the same.

  16. Investing in dividend stocks is a fantastic way for a nation to in a roundabout way to "tax" other nations. When the companies pay out their dividends, the sovereign wealth fund will generate additional income for their nation without ever setting foot in the nations where the company does business.
    When you convert your oil profits into dividends from other industries, you now have an ongoing cash flow that is virtually immune to corruption as long as the rules for the use of the money are sound and have a long term benefits for the nation and the initial investments are in proven corporations that have a global footprint.

  17. We can't remove "hate speech" because the US government is inherently corrupt and whichever political party proposes removing "hate speech" will bury somewhere in their 200 page bill a clause prohibiting and labeling anti government speech as "hate speech". Example, if you oppose the Democratic Party's slavery reparations for black people then you are engaging in "hate speech" when in reality you are not, you merely dont want to be taxed for something that occured hundreds of years ago that you had 0 control over nor anyone alive today experienced.

  18. gosh, this video is so annoying… why can't you just follow up on your topic….. changing subject too many times makes me forget what it's all about… big dislike

  19. Norway lol very easy to be rich kid if your an only child. Norway has no assets like military, space, infrastructure, ect America has 10 million people on disability collecting social security that's 2x entire population of Norway. We have 2x more illegal immigrants than Norway has citizens. This is a crazy video.

  20. dude, stick to the fucking point. "oh you thought this was a metal band from Norway? no it's from Colombia. Here's a link". A 15 minute video that could have been done in 10 sans this guy wanting to hear his own voice.

  21. Norway is a very nice nation! I have lived here in Norway all my life! Here in Norway we are more than 5 million people living here!

  22. Norway also blessed by liberal attitudes, fantastic social security network, outstanding health service insurance, very beautiful environment and utterly stunning women! ( Downside is that liberal values have encouraged a stampede of migration, which is causing enormous problems as the rats cause havoc)

  23. Norway became VERY RICH when it re-invested it's oil wealth in various Sovereign Wealth Funds. Scotland had it's oil wealth STOLEN by England, and became POORER. Remember, it is not British oil, it is SCOTTISH OIL!

  24. now make a video about why the rest of us are so poor; pandering to greedy people. the same greedy people Richard prior talked about

  25. It all comes down to non-corrupt and non-selfish leaders that actually think for the best interest of their country. Every other countries understand and can do the same, but finding leaders with genuine well intention is just too difficult.

  26. Video should ve been 10 mins shorter, and presenter tries too hard to be telegenic just drop facts take lessons from Vox, 6 million subscribers

  27. Fiscally Conservative, Socially Liberal… The Canadian Federal Conservative party did this for 11 years and got us to a surplus, Liberals got elected right after and threw us into deficit. These SJW morons need to vote for a party in the middle. But they won't get their special treatment and hand outs, everyone in the west votes selfishly for handouts before paying their bills.

  28. How come Iceland had a higher standard of living than Norway in 2007? Because Norway would have a much higher standard of living without oil. Iceland does not have oil, they have fish. And most of the money that went into the worlds greatest oil technology came from fishing. That we have both that and oil is great, but we are hard-working people and yes we have the highest standard of living in world history. Food is pure and fresh compared to the EU countries. This guy talking here has done his homework, but as I have written here. We know our own reality here 🙂 Peace !!

  29. So, if you are a family of 3 your share in the fund is 600,000 USD? They should have a referendum to decide whether some civil servants should tend to your wealth or if you should get a lump sum payout. After all, your are Norwegian and that oil belongs to you. Let the people decide! I bet that never happens. So many privileged jobs lost. (faceslap)

  30. Norwegians scare me. They are more communist than the former Eastern block.
    Although this part we should learn.
    CZ is adult and it should be able ttake care of itself. :op

  31. As a contrast in the comment section exploding with all this enthusiasm for a country's achievements… I am from Romania 🙁 . Anyway. Well done Norway

  32. india and china started escooters and solar panel electricity.Now it will effect in 2020 , becausenof india will ban diesel cars and petrol cars from 2022 or 2021.
    Now oil demand was cutting down and asian countries will stop consuming oils and petrol , gasoline or gas.While india is producing cheap solar panels nowdays , so norway can enjoy its wealth till 2050 and then crisis will started again.But if norway invest money in solar technologies and can beat up with china , then norway can increase its money.Its all about solar technology.
    And already iran, soudi arab and iraq was started in investing in solar technology but they failed due to chinese cheap solar technology.
    Good luck norway for furure.And invest your money in good place.

  33. Just wait till these Scandinavian countries run out of oil .. then we’ll see how poor they are…. the only think they export is fish and oil.. they don’t export nothing else.

  34. Pushing "woke" ideology down the throats of foreign peoples, by financial or other pressure, will turn out to create a lot of resentment and loss of soft power. Because it is a form of cultural oppression and outright political intervention.

  35. How long happy people of Norway live on average? Some of them did work for same company as I did also in one of northern countries. Hope Norway and also mine pretty politicians did not invest all of their money eggs in just one basket.

  36. State Capitalism = KEYNESIAN ECONOMICS. Really, this is not a laissez-faire State. But at least they are using their main resource for their own citizen's benefit, unlike Venezuela.

  37. As a New Zealander, I have a lot of respect for the Norwegians. They are a small country but have a high standard of living. Their government looks after their people and prioritises well-being. Their government also seems sensible.

    In fact, you can buy some Norwegian products here. There is a heater brand called "Nobo" and they have a lifetime guarantee. Top quality!

  38. Australia could learn from Norway and Qatar and be the worlds richest country. However we don't have politicians that work for the people. We have sick men that are all about themselves.

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