Norway 2050 : evaluating policy alternatives for long-term economic growth

Abstract

The starting point of this thesis is to explore the causes behind human welfare, but measuring the happiness of people and build the findings on economic theory is hard, so the level of economic growth is used as a proxy. Economic security lays the foundation for people to pursue their happiness, in most cases at least. The thesis elaborates on the possibilities to increase the economic growth in Norway, through the lessons of both economic theory and history. The variables behind economic growth are explained, and policies within four areas are assessed by how the general welfare of the inhabitants could increase, although not for all groups. The strong economic growth itself and the resource richness are the biggest threats to a continued stable and sound growth path for Norway. The temptations of more spending today should not jeopardize the possibilities of a sound growth path in the future.