Why Every Norwegian is a Millionaire | Nicolai Tangen | TEDxArendal

The Norwegian Government Pension Fund Global, commonly known as “the oil fund” owns more than 1,5 % of the worlds listed companies, managing around 11 trillion NOK (around 1 trillion USD) on behalf of the Norwegian population.
The fund is based on the idea that the wealth from natural resources belong to everyone. In this talk at TEDxArendal 2021 the fund's CEO Nicolai Tangen gives insights into the core ideas behind the fund, and its purpose of securing generations to come.
Tangen has broad experience in asset management and previously ran a hedge fund which he founded in 2005. Tangen holds a bachelor’s degree in finance from the Wharton School, a Master’s degree in the History of Art from the Courtauld Institute of Art and in Social Psychology from the London School of Economics. He has also studied Russian at the Norwegian Armed Forces’ School of Intelligence and Security.
Nicolai Tangen is the CEO of the Norwegian oil fund, formally known as the Government Pension Fund Global, which is the world’s largest sovereign wealth fund. The fund manages over 11 trillion NOK (around one trillion USD) and owns more than 1,5% of the world’s listed companies. Tangen has broad experience in asset management and previously ran a hedge fund which he founded in 2005. Tangen holds a bachelor’s degree in finance from the Wharton School, a Master’s degree in the History of Art from the Courtauld Institute of Art and in Social Psychology from the London School of Economics. He has also studied Russian at the Norwegian Armed Forces’ School of Intelligence and Security. This talk was given at a TEDx event using the TED conference format but independently organized by a local community. Learn more at www.ted.com/tedx

[@mjoelnir1899]

The Norwegians maximized the wealth of the Norwegian people from oil. The UK, USA and so on maximized the profit of companies from oil.

[@johnmcmullan9741]

At its peak, North Sea oil represented about 3% of UK GDP. In Norway, it can be >70% of GDP. That makes Norway a petrostate therefore not comparable to the UK economy. There's little evidence in Norway that the artificial wealth accumulating due to its oil industry has benefited Norwegians. Norway remains the world's least self-sufficient nation on the periphery, geographically and culturally, with an uninspiring onshore economy cursed by oil. Teachers and nurses in Norway are paid salaries pretty comparable to those in the UK. It costs 2-3 times more (without a cost-of-living crisis) to live in Norway. Taxes are much higher in Norway and discretionary incomes don't go far. Do the maths.

[@mjoelnir1899]

@@johnmcmullan9741 You should perhaps check your data. Salaries in Norway outpace the ones in the UK by a mile, cost of living is higher than the UK, but not 2 or 3 times. The standard of living is higher in Norway. The oil revenues, apart from the high salaries in the oil industry, have not been spend yet, they were collected in the wealth fund.

[@johnmcmullan9741]

@@mjoelnir1899 Rubbish, that's just what some need to believe. Why don't you recheck your data? I've been living in Norway for 10 years. I know exactly what gets passed off as "standard of living" in Norway. Apart from the higher levels of household debt in Norway, you only have to visit your local grocery store for a valid measure of Norway's "standards". There's very little competition in Norway so very little value for your money. Daylight robbery and extortion seem to be the norm. You can't even buy a nice cod fillet in Norway, despite it having a huge cod fishery. Compare job markets to get an idea of career opportunities too. Education is miles ahead in the UK. As is science and R&D generally. The UK pays its fair share towards NATO as well, while Norway doesn't. The UK has more than enough fertile arable land and a good climate to be self-sufficient, if it ever needed to be. Norway doesn't and will always depend on food imports to survive. I could go on and on, but I'll just finish by pointing out that in the latest international expat survey, Norway was ranked as one of the worst places to live, a miserable 52nd out of 53 countries. Despite its problems, the UK doesn't prescribe xenophobic flag-waving ultranationalism. And remind me why there are significantly more Norwegians living in the UK than Brits living in Norway? And why all Norwegians resident in the UK before Brexit were granted residency ages ago while Norway still has a very embarrassing backlog after two years? There seems to be a very concerning lack of basic competency in Norway. Everything seems to be an inefficient uphill struggle.

[@Youtube_Stole_My_Handle_Too]

@@johnmcmullan9741 Do not request that he challenge his indoctrination, as he will become disheartened upon discovering that only individuals employed at McDonald's and those in low to medium-level positions earn higher incomes in Norway when compared to more reputable nations. Social democracy has diminished the aspirations of the average individual, as the prospect of amassing wealth in Norway remains elusive. Furthermore, once one achieves affluence, the specter of kleptocracy looms ominously. This illustrates the inherent drawbacks of semi-socialism. There's no hope for the clever or bright man.

[@soumil8988]

This shows how good decisions for the benefit of all by politicians can brighten the future for generations

[@jeschinstad]

5:00: This is not entirely accurate. Because it was the hydroelectric power that first led to the creation of "hjemfallsretten", which is that all natural resources that are exploited by foreign corporations, must be returned to the people at some point in time. We did this with the oil, but that was the second time we had success with it. The first was in 1909. Many countries would do well to learn from this.

[@azamab]

Very inspiring tq

[@shunaras]

I would love to move to Norway 🇳🇴 this is such an inspiring story

[@jeschinstad]

The full story is actually more inspiring, because it began with an invention that has doubled the size of human civilization; artificial fertilizer. It's called the Birkeland-Eyde process and it requires enormous amounts of electricity, but it can feed billions of people. That's why we created our massive hydroelectric power, which we didn't have the skills or finance to do. So we let foreign companies invest in building it on the term that it would eventually be returned to the Norwegian people. That's how Norway first got very wealthy. We did it again with the oil sixty years later. But this method requires a lot of trust, which makes trust the most important commodity in the world.

[@shunaras]

@@jeschinstad I am saying because I am most likely going to end up in poverty in Austria, I will probably earn more money working in a fish factory in Norway

[@jeschinstad]

@@shunaras: Norwegian fish factory workers are paid ok by Norwegian standards. We currently export 80% of our fish unrefined, so more fish factory workers are definitely welcome. :)

[@shunaras]

@@jeschinstad sign me up :)

[@rajshekarrajshekar7342]

Sir , Norwegians, world must agree, have had stream of people leaders, who really cared and stood up test of time to put Norwegians and their holistic prosperity at Center & Forefront in those decisions that ushered and lead Norwegians to where they stand to date

[@NyalBurns]

Britain must do this to survive the incoming decades.

[@sebastianwrites]

We sold all our oil and gass off under Thatcher in the 80s... there are videos on this on youtube if you look? That's why we are £2.4 trillion in debt, while Norway has a 'huge' surplus!

[@karlweiss7560]

@@sebastianwrites Your statement is false. The government of Norway does not own the oil. Their wealth fund is funded with taxes levied from oil and gas companies. The UK should have put those oil tax revenues in a wealth fund like Norway, instead of squandering them in social programs that don’t work.

[@sebastianwrites]

@@karlweiss7560 You are incorrect, and skewing this topic to fit your own bias. And what social programs... seriously get a grip? We have more foodbanks than ever, we didn't even know what these were a 15 years or so ago... it's an appalling indictment on our society! And by the way, the countries which are 'repeatedly' are voted the "happiest" in the world have proportional representation voting, and on average citizens pay 60% tax, and have "extensive" social programs.

[@AreHan1991]

Well, you exaggerate. Taxes aren’t nearly that high here 😄

[@pmkaka]

Resource Curse - so true ! Norway showed their intelligence. 1996 an interesting moment so too 2008 to be able to be contrarian. Now in 2022 how contrarian can you play?

[@lassaronjon]

we are unloading our positions as we speak.

[@victorosborn3348]

With the extra 1700 billion kroners from oil & gas in 2022 the oilfund is waiting for the stock crash. The Oilfund is unloading the russian stocks.

[@martinsundland7614]

Could you even imagine a politician in America proposing the Norwegian model for anything? It's all about me and you can look out for yourself - capitalism at its basest form. The oligarchy wouldn't allow any congressperson or senator to utter a word along the Norwegian model.

[@Abunm]

Funny how there is a blueprint on how to live life ethically through capitalism but 99.9% dont know or dont care to know about this. Salute to Norway.

[@user-cv5kq9hy7x]

អរគុណ

[@Spydet12]

Thinkers,Tailor ,Sailors and Fishermans

[@satka94]

Millionaires on paper!

[@victorosborn3348]

So norwegian are millionaires when they buy a million dollar house with no mortage? Car? property? when are you a millionaire?

[@Topper_Harley68]

So where is my million? Have not seen it yet.

[@Error2username]

Im also stil looking, expencive food and gas. The poor will be poor nomatter where they live....

[@justwannabehappy6735]

Kinda ironic since he just said Norwegians were less ambitious and hardworking than Americans.

[@jayjay8120]

1 million Norwegian kroner is around $113,300 not a million by American standards. The NAV will dry up when the oil dries up.

[@normann8179]

Something like 3% of the overall income of the pension fund comes form oil, chief

[@jayjay8120]

@@normann8179 Norway withdraws 3% of the pension fund each year. Also known as the “oil fund” it is an oil fund funded by oil.

[@normann8179]

so what if it was funded by oil? you said that NAV will dry up when oil dries up... that is not true because oil is currently not the fund's main source of income and is actually very far from it

[@normann8179]

@@jayjay8120 also give a source for the 3% per year withdrawal

[@jeschinstad]

@@jayjay8120: So we withdraw 3% when the fund grows 7% and you think that means the fund must be shrinking, huh? :) We are so lucky that FrP was the only party that wanted to donate the oil revenue to the global financial market. We would each have lost over 200,000 dollars if they had more voters that year.

[@sebastianwrites]

He could have focussed less on the money, and more on how that money is used to help with education, schools, hospitals... certainly Norway should not have a 'homeless' problem with all that wealth? Having said that, no advanced democracy should!

[@williampope3503]

They ideally wouldn't, indeed. Although it's worth noting that the proportion of homeless people per 10k is extremely low at 7, which is less than half that of the US at 17, and far less than the UK at around 54. So it is one of the absolute lowest in the world, probably helped by this abundance of resources.

[@AreHan1991]

Or rather, on how those resources are used

[@Minzon3]

In order to avoid the dutch disease, Norway's gov has to use the handlingsregelen when spending income from the oilfund. Meaning they may use 2-4 %. In 2023 that is 366 billion NOK. Gov income largely comes from taxes and duties. There is also a very special way of setting salaries in Norway. The trade union for the industry sector negotiate first. It's called the Frontfagsmodellen. It determines the standard and expected level of income, taking into the acount of changes in living costs etc. One of the thing this model affects is that salaries in Norway aren't super high. But the minimum wage is in comparison with other nations higher. And most would concider themsselves middle class. So the living standard statisticly is high, overall. Also, it is very visible and transparent, where the money is spent - when it comes to taxes. We all know that everyone through the tax-system pay our part in education, healthcare, culture/sports, infrastructure etc. There is no "Free" anything. We all pitch in with the level we are able to pitch in. Every year the information about everyones income and wealth is available and transparent for everyone to see. Not paying taxes in Norway is very frowned upon, because its basicly viewed as shooting yourself in the foot. If you cheat the system, it will collapse. It's not perfect. Someone will always try to cheat the system and misuse it, but in general - every norwegian understands how it works. The Key is trust. Trust in the system, the people, your neighbour - that we all contribute and do our due diligence.

[@Minzon3]

So it has a lot to do with culture. Then the people who manages the money in the right way, at the right time. All are political parties have their agenda and focus areas, but common to them all are core values and understanding of the framework they work within. But the most important thing is, and you can see that in any Nation really, is investing in your people. Meaning education for all (make it super available), and invest in institutions and infrastructure that makes it possible for people to be productive, innovative and creative. For a person to be all those things, it needs the basics (food, shelter etc.) But also having good health, physicly and mentally. (norwegians spend a lot of time outdoors in nature) The gov invests in the local societies in ways that highlights the importance of activity and cultural input. And time. (kindergarden for kids, so that both parents can work). Etc. It makes sense saying it. But it's complex and takes time to build. Again, trust being the core value of everything

[@rdurcyrdurcy6761]

Nice ,but too long !! 😊

[@Error2username]

Its the world most expencive country, how do you think it is for poor ppl?? Eat the rich, make them share.

[@erictayverystrongimaginati1662]

Blue eyes Arab 👻

[@ThomasConover]

Everyone loves a great lie. 👍

[@sailingviking7885]

Just give me my share and I`ll be out of here 🤑! It is just a matter of time before the sosialist imported votes will empty Elises jar and Nicolai will be without a job.

[@ronburd4362]

Probably will happen if everyone does what you want to do

[@sailingviking7885]

@@ronburd4362 Not probably! It will! You obviously do not live here.

[@jeschinstad]

@@sailingviking7885: You are incredibly ill informed. When you beg to pay for wealth management rather than having it for free and to be taxed rather than having your income at 0% tax, it proves with absolute certainty that you don't understand anything about economics.

[@sailingviking7885]

@@jeschinstad Hmmm ,,,, what kind of nonsense answer are you coming up with. What does "we" get for free? You are actually taxed for the National Insurance up to 25% of the income depending on the size of the income and work area. In addition, my comment was based on the increased burdens on NBIMs that increase with the population, which now basically changes due to increased immigration without the payments to the National Insurance increase on the same scale. Maybe you should read more carefully and rather examine realities instead. My advice to you is to get out of the red mist that your head is obviously in.

[@jeschinstad]

@@sailingviking7885: «What does "we" get for free? » Uh, it's a legal tax haven? Let's say we pay you a 100,000 usd of your oil money. So you invest it in the American stock market and it turns out you're really good at it and you make 10% every year for 20 years, which is the Norwegian average. Great, right? After 20 years, you have 672749 on your account. Except that's not true, because unlike Norway, you have to pay taxes every year. So what _you_ have, after having paid your taxes to America, is 511204 usd. You have so far lost 161545 dollars by taking your money out of the GPFG. But we have ignored your fees and American banks don't operate for nothing. It adds up, man. But let's ignore that fact, because now it's time for you to pay your taxes to The Kingdom of Norway, which is 35,2%. In summary, because of your disgust of Norway and your false sense of superiority, you are left with 331260 dollars instead of 672749 you would've had by keeping it tax exempt. You have lost 341489 American dollars on your disgust of Norway. In case you're curious, that's 1422 dollars per month for twenty years. So, when you ask what you got for free during these last 20 years, my answer is very simple; you got 341489 dollars of risk-free income. Except of course, we didn't start with 100,000 usd twenty years ago. After all, we're at the very beginning of this adventure.

[@Gryerdeili]

It doesnt pay for roads you snake! We pay for the roads with the tolls! How dare you!

[@ShadowTani]

This comes down to the egg and the chicken for some of these... Some roads you pay toll for have already been paid by a government issued loan, the toll goes towards paying that down. In that case where does the government get the original credit from you think? Also, not all new roads or maintenance of old roads is paid with toll. You need a bit more perspective before calling him out as a snake I think.

[@Youtube_Stole_My_Handle_Too]

@@ShadowTani After calculus, we can transform any amount related to time into a now-value. When we sum up all traffic related taxes (including tolls) it amounts to three times more than what is used at traffic related expences. Thus, traffic related taxes are used as a milking cow by the kleptocracy.

[@AreHan1991]

The tolls only pay a small part of the costs. Building and maintaining roads is extremely expensive

[@Topper_Harley68]

@@AreHan1991 Stop using spiked tires and the cost will decrease a lot.

[@Error2username]

​@@Topper_Harley68another silly prop who dont drive on snow, you know nothing..