For a country of under 6 million people, Norway has accomplished an amazing economic feat. They have a debt-to-GDP ratio that is under 35%. Their total debt is only $145 billion. In addition, they have accumulated over $2 trillion in their Wealth fund, which is about 13 times the amount of their debt.
The wealth fund, which manages the Norwegian state’s revenues from oil and gas production, has invested about half of its value, or about $1 trillion, in the U.S., across bonds, equities and real estate. They tend to invest only in companies that are environmentally friendly. As a result, Fund CEO Nicolai Tangen told Reuters he had discussed the risk of a possible backlash from the U.S. to the plan with the board of the central bank, among other issues. For more details, see
In the 1960’s two respected economists took opposing stances regarding the annual budget and the National debt. Milton Friedman, the conservative view, was that the Government should work on an annual balanced budget and make every effort to reduce the National Debt. John Maynard Keynes, the liberal view, was that annual deficits were ok in years that required economic stimulus, and in years when the economy was overstimulated, a surplus should be achieved. He warned that if the ratio of Debt to GDP ever exceeded 75%, the country’s financial viability would be in danger. At the time, the ratio was under 40%, so danger was not in the cards.
Both economists would be horrified if they were still living. The 75% warning level was reached about 16 years ago; the National debt has almost doubled and is projected to reach $40 trillion by the end of 2026.
Here’s a summary of the U.S. national debt at the end of each fiscal year from 2008 to 2026, based on Treasury data and historical records
In the details, one interesting component of the budget that has about doubled in the last 10 years is interest. It is the 3rd largest budget item (after Social Security and Medicare/Medicaid) at almost $1.04 trillion.
How much are doctors paid?The average doctor in the US earned $350,000 in individual total income in 2017. That’s about 1.75 times what most people guessed ($200,050). But, of course, doctors of certain specialties earn more than others. And earnings vary by state — and the top state might surprise you. The highest-paid doctors live in South Dakota. There, the average physician earned $432,800 in 2017. Compared to other states, South Dakota had a median household income below the national average, at $56,521 in 2017. Workloads for different specialties also contribute to income differences. Neurosurgeons earned an average of $623,500 in 2017, over three times more than family medicine doctors ($192,800). They also worked about 16 more hours per week on average: 63.6 compared to 47.4. Some jobs, like lawyers, have pay that tracks closely to state household income. Physician pay follows no such pattern. This is partly due to how Medicare adjusts reimbursements, particularly in rural areas. The top 1% of the nation’s doctors earned an average of $4 million annually, largely from business income and capital gains.
