Norway has something to teach almost every other nation in the developed world. Unemployment in the country moved to 2.8% last month. That is very high by Norway’s standards. Last year the figure was only 1.7%.

The easiest explanation for the low jobless rate is that Norway is a large net exporter of oil and gas. But, the explanation is not adequate.

With oil prices down about 70% from their $147 peak, Norway should be suffering from the same financial problems that plague Russia, Iran, and Venezuela. But, it is not. The government took a large portion of the surpluses from the years when oil prices were high and preserved them as a “rainy day” fund. That money is used to create jobs and sustain Norway’s manufacturing and service sectors.

Almost every other major nation, with the possible exception of China, took whatever surpluses they had seven or eight years ago and dissipated them though tax cuts and government programs not aimed at job preservation.

That did not work out very well.

Douglas A. McIntyre