Updated: Norwegian wealth differences grow / News / The Foreigner

Updated: Norwegian wealth differences grow. Pay differences in Norway are now at their highest for 80 years, according to a new report from the Manifest Centre for Social Analysis. Researchers now believe the era of social democratic egalitarianism is over. “Inequality has increased immensely in recent times. 30 years ago, rich people earned 26 times that of the average person; it is now 178. On an annual basis, one of the richest people in Norway earns the same as five people do in a lifetime,” Julie Lødrup, independent think-tank Manifest’s general manager, tells The Foreigner. The financial gap between the top one percent and average income earners now far exceeds those of the US and UK. She attributes this to several reasons.

richandpoor, norwegiansalaries, classdivisions, manifestcentreforsocialanalysis, julieloedrup



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Updated: Norwegian wealth differences grow

Published on Monday, 28th February, 2011 at 09:57 under the news category, by Michael Sandelson   .
Last Updated on 28th February 2011 at 12:53.

Pay differences in Norway are now at their highest for 80 years, according to a new report from the Manifest Centre for Social Analysis. Researchers now believe the era of social democratic egalitarianism is over.

Norwegian currency
Norwegian currency
Photo: chezzzers/IStockphotos


“Inequality has increased immensely in recent times. 30 years ago, rich people earned 26 times that of the average person; it is now 178. On an annual basis, one of the richest people in Norway earns the same as five people do in a lifetime,” Julie Lødrup, independent think-tank Manifest’s general manager, tells The Foreigner.

The financial gap between the top one percent and average income earners now far exceeds those of the US and UK. She attributes this to several reasons.

“There is increased growth in industry, with the richest people earning progressively more, but this does not benefit the employees. Personnel working in the hotel sector, for example, are some of the lowest earners. There have also been different tax reforms over the last 30 years, which have resulted in less tax for the rich.”

Results from several opinion polls show 70 percent of Norwegians believe decreasing these differences is a major political task, according to Ms Lødrup. She fears the consequences of what she regards as a negative trend for the Norwegian equality model.

“Politicians have every right to be proud of this system; it is a good export article for them. However, they must do something to keep it. Research shows inequality itself is bad. Others’ faith in the system could be reduced if some of the richest people do not contribute much to society.”

Manifest believes the government should introduce major reforms, including increasing the current three percent tax on share dividends.

“This loophole in tax regulations is worth tens of millions of kroner for rich people, meaning it is only they who benefit. There should also be higher taxes on wealth above 10 million kroner, as well as making inheritance tax more progressive. Otherwise, differences will only be larger in five years time,” says Ms Lødrup.



Published on Monday, 28th February, 2011 at 09:57 under the news category, by Michael Sandelson   .
Last updated on 28th February 2011 at 12:53.

This post has the following tags: richandpoor, norwegiansalaries, classdivisions, manifestcentreforsocialanalysis, julieloedrup.





  
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