2020.08.13 by The Last Hawk
In Norway jobs are soon no longer needed as the population can become millionaires by selling real estate to eachother. The mantra is to get as much loan as possible and spend it all on real estate. Massive tax incentives are provided by the Norwegian government to attract players to this game. I'm talking about tax deduction for interest rates, reduced tax on rental income, reduced wealth tax, and last but not least tax free capital gains.
Norges Bank is also on board. Forget about the inflation target, job creation or a stable currency rate. The most important objective for the central bank is to have a high growth in household debt so that the price of real estate can keep raising. They've done an exceptional job supporting this objective though, and households in Norway now rank top in the world for the highest debt to income ratio.
Few people are concerned about the debt situation, and the population is frequently assured by experts that the real estate market is in a healthy state. Savers and those who work are blissfully ignorant of that the scheme is operated almost entirely at their expense.
The track record for this system is however impressive. Almost everyone who has purchased real estate in Norway since the 1990s is a winner. With such an ingenious scheme in place continued prosperity must surely follow.
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