Is Norway Socialist?

A very well written article in the latest INC. magaine asks Why are there are so many entrepreneurs in the high-tax socialist country of Norway?  Good question! 

And so the case of Norway—one of the most entrepreneurial, most heavily taxed countries in the world—should give us pause. What if we have been wrong about taxes? What if tax cuts are nothing like weapons or textbooks? What if they don't matter as much as we think they do?

Now let's step back and question the premise.  Is Norway socialist?  It may be relatively high tax, but it is more capitalist than the U.S. in many respects.  Indeed, most northern European nations are closet free market hubs.  It's the southern countries that are socialist on the freedom index (the Italys, Greeces, Spains, Portugals ... and yes, Frances).

Just consider this entry on Norway from the 2011 INDEX OF ECONOMIC FREEDOM:

Norway’s economic freedom score is 70.3, making its economy the 30th freest in the 2011 Index. Its score has increased by 0.9 point since last year, mainly reflecting a considerable gain in freedom from corruption. Norway is ranked 16th out of 43 countries in the Europe region, and its overall score is well above the world and regional averages.

The modern and competitive Norwegian economy has long benefited from its relatively high levels of economic freedom. Entrepreneurial activity is well supported by prudent and transparent regulations governing investment and the financial sector. Together with openness to global commerce, strong protection of property rights also supports economic dynamism. Norway’s high level of business freedom has produced a commercial environment that is both innovative and resilient.

Comments

[Max Chafkin]

Tim, thanks for the post. I think your standard of what is socialism is strange, given the fact that Norway has socialized health care, pensions, and education. The point you are making is the one I was trying to make in the story: That certain aspects of "socialism" (like universal health care or progressive taxes) are not inherently bad for entrepreneurs.

Posted my response here:
http://www.inc.com/max-chafkin/what-norwegian-socialism-looks-like.html

[aaron]

I have to agree with Max's response...if Norway isn't socialist, then who is? The Norwegian government is more active in the economic lives of its citizens than the government of, say, Greece or Italy. It has socialized healthcare, a high tax rate, a social safety net...
If anything, I'd be suspect of using the Heritage Foundation rankings as an index for the degree of socialism in a country. Sweden, for example, is at the same level as Finland, the UK, and Spain for example. Perhaps economic freedom and government involvement in the economy are not the same thing? The Heritage Foundation (a generally right-wing thinktank) has also been criticized in the past a bias in its rankings of giving economically strong companies higher ratings of economic freedom.