Why did Venezuela collapse, but Norway didn't?

When oil prices slumped, Venezuela completely shut down while Norway seemed fine.

Why is this?

And can anyone redpill me on the Norwegian economy, are they as socialist as everyone says they are?

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norway is NOT fine
a lot of people lost their jobs
the city of stavanger went from a blossoming metropolis to a slum
the norwegian crown lost it's value
the price of chocolate and candy skyrocketed

life is hell now

Not all oil is the same, Venezuelan oil is much more thick and has much more particulate meaning it has to be processed more for it to be used. The oil in Norweigan territory is a more clean and finer grade oil allowing it to be used with less processing and if it is processed it gets used primarily in the aeronautics industry. Since it requires less processing it allows them to get to their markets at a lower price point meaning the oil slump doesn't affect them as harshly.

>the price of chocolate and candy skyrocketed
I'm so sorry

That the Scandinavian countries are socialist is a common misconception, promoted by the American left, and in particular Bernie Sanders.

These countries are market economies with social policies. Capitalism-light, with high government interventionism in the economic sphere.

Private property and agreements, the fundamentals of a functioning capitalistic economic system, are well guarded and protected by Norwegian laws. The opposite, clearly, is true of the Venezuela socialist experience.

The Norwegian economy is not fully dependent on oil. We were indeed hit by a light recession because of the oil price fall(reflective in higher unemployment and severe problems in the area of the country most dependent on oil production), but nowhere near very destructive for the entire society.

Venezuela, on the other hand, has continued down the road of glorious social redistribution. Hugo Chavez, gaining access to the glory of oil money, used this to drastically increase the living standards of the Venezuelan people through basically 'giving them free stuff'. This failure to economically modernize is where much of the current economic problems of Venezuela lies. Money used to buy votes through social programs. Money runs out, people riot. Then the socialist machine tightens the ropes to stay in control.

Norwegian oil policy, on the other hand, has been aware of the negative effects that oil money can have on the stability of the economy. Thus, the Norwegian oil fund, has invested the profits of the oil enterprise overseas. This has lead to a more stabilizing effect, by not pumping money and raising inflation in Norway.

would it have been better with lower taxes instead of putting (literally) a trillion dollars into the oil fund?

When are you going to break Anders out of prison? Europe needs him more than ever now

Because Norway own a thriving sovreign wealth fund with very diversified interests, and Venezuelan nepotists raided the state for all its worth until the oil prices slumped and the magnitude of their crimes meant they couldn't prop up the basic services that the government had been funding with petrodollars.

And obviously Venezuela is a second world shithole that has never developed properly and can't live without selling unoxidised carbon atoms.

That makes sense, I was in Stavanger over spring and wondered why the city looked so empty. Very few people walking about on a weekend, but to be fair I was exploring it early in the morning, so it mat be more related to when you guys decide to leave the home.

so would overseas investment be better than lowering the taxes?

and shouldn't overseas investment be done privately, instead by the state?

because if an investment goes wrong, for example fannie mac in 2008, then the people feel the costs, instead of a private investor.

are you really poor by chance?

>And can anyone redpill me on the Norwegian economy
We are okay, if it weren't for the oil we'd still live on just fishing and tourism.

So then Venezuela isn't socialist either?
95% of Venezuela's exports are oil. About 15% of Norway's are.

how is the oil fund comprised? is the oil fund made up of a vault full of kroner, or investments, gold etc?

>so would overseas investment be better than lowering the taxes?
Certainly there is a case to be made for this, giving the people of Norway higher spending power, but the state really needs its high taxes to pay for the malfunction welfare system.

>and shouldn't overseas investment be done privately, instead by the state?
The private sector is certainly better at generating profits than the government could ever do, but the view is that the money generated from the natural resources belongs to the Norwegian people. Thus allowing private individuals to invest this money, and profit from it, is seen as anti-moral(even though several other resources are not treated like this). The people organizing these investments are paid some of the highest salaries of any government official, and they have, year after year, proved themselves capable of growing the investment abroad at high rates.

Lots of safe real-estate investments.

>the price of chocolate and candy skyrocketed
hahahaha faen du er homo

Decentralized to 77 countries of current investments. 9000 companies. 1,3% of the world's stock noted companies. 2,3 of Europe's stock noted companies.

Currently making 5,7% yearly profit.

Then again much of the profit is indeed used by the state budget these days, because of the low oil prices and to give economic Keynesian stimulus(which is idiotic).

why there's so much anime on Sup Forums?

White people and they're not a third world shit hole SOLELY reliant on oil.

Norway isn't socialist and neither is Venezuela. They're both social democracies that have private ownership and free markets and are therefore capitalist.
The difference is that Venezuela is a European style social democracy on steroids. They have far more state intervention than in Europe.
They have also massively mismanaged their economy as socialists always do. They have mindless price controls that forced businesses to sell their products for jack shit and bankrupted half the businesses in the country.
Then they just replaced the missing production inside the country which they had themselves caused with oil-financed imports or they used to until oil prices collapsed in 2014.
Also they have ruined their oil industry because they have replaced highly skilled engineers with political stooges that always obey but have no idea of what they're doing. (pic related)

Oh and did i mention that Venezuela is a corrupt South American shithole and always was?

Relax. Norway's' next. Communism is the most perfect recipe for disaster.

>Go to car forum
>They have a politics sub board
>"wtf why post car pictures as well?"

You have to go back

>btfo

Venezuelans are low IQ violent mestizos with high time preference. Norwegians are the opposite.

That's cute. But government has exactly one fucking job: the protection of private property.

All else is communism by default.

...

>About 15% of Norway's are.
And the remaining 85% is natural gas...

en.m.wikipedia.org/wiki/Socialism_of_the_21st_century venezuela venezuela ain't the same as norway.

>But government has exactly one fucking job: the protection of private property.
You say that like it's a statement of fact rather than your own delusions and wishful thinking. Whether you like it or not, the night watchman state is a long gone fantasy.

Because Venezuela was successfully subverted by (((democrats and socialists))) who took over in 1958 in a military coup against Perez Jimenez.

During 40 years of two party """""democracy""""", they gave away money for votes, created salaries for unemployed people (which led to overpopulation and favelas in cities like Caracas), let poor people in, promoted corruption. All of this paved the way for Chavez, a zambo subhuman filled with resentment towards the rich who is now percieved as some sort of demigod by those of his kind.

We went from being one of the fastest developing nations, having a rock solid currency, zero debt, higher wages than most of Europe at that time and really low crime rates... to being the disgrace of a failed state that you now see in the news.

With so much oil, we had everything we needed to shine. But as always brown people and their shit mentality and worldview have to ruin everything.

Socialists will claim that it was all because of the drop in oil prices. Money can't buy a higher IQ and the ability to plan for the future.

>the price of chocolate and candy skyrocketed

What is Venezuela?

Venezuelas getting sabotaged by CIA for muhh oil. USA wants to implement its puppet gov.

You are alright Venez bro :)

t. neet

kys my man

One is a commie shithole filled with non-whites the other is a nation with mixed economy and 90% white.

Yes this is the risk our government took. We don't control our own currency. Instead it is based entirely on the investments made by government in overseas projects. Not a good thing in my opinion. But commies will tell you otherwize.

and timber

t. great grandson and heir of timber baron

Why would it make sense? Because Stavanger looked empty? What the fuck am I reading.

Stavanger is a small city like everything else in Norway except for Oslo and Bergen.

And no, the vast majority of people did not feel any kind of impact from the fall in oil prices because the oil industry is to some level separate from the rest of the country. I live in Stavanger so obviously I know many who were (including myself), but this wasn't a nationwide halt like it is in Venezuela.

But let's be honest here, it was about time. The wages in the oil industry were absurd, to the point everyone with a simple bachelor's degree in engineering or a 2-year offshore program was earning enough money to buy Tesla's and cabins all over the place. The fall in oil prices wouldn't even affect the Stavanger area if it wasn't for Statoil forcing wages up to unsustainable levels.

yeah but it's not

norwegians are white

It's funny how Nordic countries are always used by leftists as "shining examples of socialism"

Venezuela was also used as an example, then it went down the shitter and it suddenly isn't "real" socialism.

Norway does what Uncle Sam says.
Venezuela is on the list.

They know how to hedge.

Also they're not a """banana""" republic and come from a certain genome which promotes altruism and helping your fellow man.

Leave NATO and join our club of oil niggers