When it comes to quality of life, there are few countries that can supersede America in terms of luxury, comfort and overall well-being. Not even Canada or Britain exceeds the United States in quality of life. However, Norway, an oil-rich country situated in the Scandinavian Peninsula, undeniably outstrips the American standard of living.
The United States has a lower per capita GDP than Norway with a GDP of 51,749 compared to 99,558, respectively, and is also home to one of the most pressing income distribution gaps in any industrialized nation, surpassed in income inequality by only Russia and Mexico.
Due to America’s cavernous income inequality, the poorest 38% of Norwegians are better off than the poorest 38% of Americans despite an overall lower average per capita GDP. According to Syracuse University professor Timothy Smeeding, the United States relies heavily on the markets to an extent that social safety nets are neglected, unlike Norway, which focuses more resources on providing aid to the poor.
This is not to say that America completely disregards its poor. To clarify, the United States has initiated its portion of socially-oriented acts, such as its attempt to reform the welfare system during the past two decades.
However, while the number of individuals on welfare was reduced from 5 million to slightly over 2 million, the welfare poor were downgraded into the working poor. Although welfare reform was rooted in good intentions, the lack of government safety nets defeated the purpose of the entire act.
Although the discovery of oil on the land in 1969 had transformed Norway, more than just an abundance of the valued natural resource buttresses Norway’s economy. Norway’s success has been attributed to what many call the “Norwegian Model”– a model of running a welfare state in which resources are carefully monitored, preserved and kept up-to-date.
While the United States ranks among one of the wealthiest nations in the world, it has stayed remiss in establishing social safety nets, particularly for the less economically-advantaged subsection of the population. Due to the lack of social safety nets, America hosts one of the largest global income inequality gaps, and is ultimately surpassed by the tiny welfare state of Norway in terms of quality of life.
– Phoebe Pradhan
Sources: Infoplease, CS Monitor, World Bank, News in English
Photo: The Telegraph
FAQs
Norway's strong emphasis on healthcare is another factor that contributes to its high standard of living. The country has a universal healthcare system, which means that every citizen has access to medical care. This system is highly efficient, with short waiting times and high quality care.
What 2 factors contribute to Norway's highest standard of living in the world? ›
High Standard of Living
Norway is renowned for its high living standards, with a robust economy, low unemployment, and a high GDP per capita.
Why is Norway so wealthy? ›
The country has a very high standard of living compared with other European countries. Norway's modern manufacturing and welfare system rely on a financial reserve produced by exploitation of natural resources, particularly North Sea oil.
What is Norway's main source of income? ›
Oil, gas, seafood, and products from energy-intensive industry are among our main export commodities. Our sea areas are six times the size of our land area, and our ocean-based industries account for almost 40 % of our total value creation, and 70 % of our exports.
What is the downside of living in Norway? ›
The cost of living is extremely high
Rents and home prices in Norway are extremely expensive. The cost of food is also high, especially if you're dining out. If you don't like to cook at home, you may need to take a good, long look at your budget to see if you can afford to live in Norway.
What is the average income in Norway in US dollars? ›
As of the latest data, the typical monthly income for a full-time worker in Norway is around 47,000 NOK (approximately 4,700 USD) before taxes. Annually, this amounts to an average salary of about 564,000 NOK (or roughly 56,400 USD).
Why are Norwegians the happiest people? ›
“In Norway, we have a welfare system that takes care of us and saves us from a lot of worries. The inequality is low when it comes to the standard of living. We feel safe and free and have a strong sense of belonging”, she adds.
What is the average household income in Norway? ›
Norway Annual Household Income per Capita reached 46,675.159 USD in Dec 2022, compared with the previous value of 51,753.964 USD in Dec 2021. Norway Annual Household Income per Capita data is updated yearly, available from Dec 2005 to Dec 2022, with an averaged value of 45,475.083 USD.
What is the most common occupation in Norway? ›
In 2022, the most common type of occupation in Norway was professionals, accounting for 818,000 of the total 2.8 million employees in Norway. With over 580,000 occupied as service and sales workers, this group made up the second largest type of occupation in Norway, followed by technicians and associate professionals.
Does Norway have free healthcare? ›
While the availability of public healthcare is universal in Norway, there are certain payment stipulations. Children aged sixteen or younger, and several other groups (such as nursing women and retirees) are given free healthcare regardless of the coverage they may have had in previous situations.
Norway poverty rate for 2021 was 0.00%, a 0% increase from 2020. Norway poverty rate for 2020 was 0.00%, a 0.5% decline from 2019. Norway poverty rate for 2019 was 0.50%, a 0% increase from 2018.
Does Norway tax the rich? ›
Norway's maximum wealth tax rate, applicable to fortunes in excess of 20 million kroner, was increased to 1.1% by Store's cabinet from 0.85% during the previous, Conservative-led government.
What is the main religion in Norway? ›
Religion in Norway is dominated by Lutheran Christianity, with 63.7% of the population belonging to the Evangelical Lutheran Church of Norway in 2022. The Catholic Church is the next largest Christian church at 3.1%. The unaffiliated make up 18.3% of the population. Islam is followed by 3.4% of the population.
What is the political risk in Norway? ›
Norway's overall political risk outlook remains low due to its history of stable governance and minimal political conflict. The country faces minimal structural political risks, underpinned by economic equality and a robust sovereign wealth fund.
What food does Norway produce the most of? ›
Livestock is the major agricultural product, and, although the country is more than self-sufficient in animal products, it remains dependent on imports for cereal crops.
Why is life expectancy in Norway so high? ›
Norway has a great life expectancy (82 years on average), thanks to the active Norwegian lifestyle, the diet that's full of Omega−3 fatty acids (all that salmon is definitely good for you) and of course, a robust healthcare system that's funded by the public.
Why is life so expensive in Norway? ›
The high cost of living in Norway is a result of its egalitarian social system, which relies on a value-added tax system and minimal variations between incomes among its citizens to sustain its unique economy and socioeconomic structure.
Why are people in Norway so healthy? ›
People in the Nordic countries like to hike and do sports with their friends, making it easier to stay consistent. The habits and culture that people are surrounded by in Scandinavia encourage a healthy lifestyle, such as Nordics' love for nature and physical activity.
Why is Norway's HDI so high? ›
Rich Economy: It is actually known for being the place with the highest living standards, and its rich economy is one of the major reasons. It is fueled by oil and gas exports which not only makes it extremely efficient and stable, but also helps it to be one of the richest countries for many many more years to come.
