Norway is the Wealthiest Country in the World
According to a 2018 report by the World Bank, Norway is the Wealthiest country in the world.
In 1969, oil was discovered in the North Sea off the coast of Norway.
The government of Norway made a courageous political decision. Rather than squandering their new found wealth by lowering taxes, which would have been enormously popular and would have guaranteed re-election, they established a sovereign wealth fund to ensure a strong future. Today Norway is the wealthiest country in the world.
Compare that to what has happened in Canada. Oil was discovered in Alberta in 1947. Alberta was able to continue not collecting provincial sales tax and has continued to elect leaders who promote popular short term solutions. The incredible financial windfall from oil should have made Alberta and Canada very wealthy. Today with falling oil prices and ecological difficulties related to pipelines Alberta is in serious economic trouble. Alberta will not learn from Norway. It is unlikely to accept that long term financial planning is better than keeping people happy by never collecting sales tax or saving for a rainy day. Unfortunately it is more likely that they will continue to blame Ottawa for their difficulties.
