Economic polarization in Norway, figures

[Trond Andresen <Trond.Andresen@xxxxxxxxxxx>]

I have for a year or so tried to pu(blis)sh a paper, entitled "Economic
Black Holes".  The draft paper, sent to a lot of you guys and as of
today quite heavily revised due to some useful responses, analyzes the
inevitability and the consequences, subject to some conditons, of
economic polarization (increasing maldistribution of wealth) in an
economy which has returns on different sorts of invested capital.(I am
Btw still searching for journals that may be interested.  Hints are
welcome).

I have not until now collected any empirical material, except for the
data below, which may be of interest to this list. The data seem to
confirm the existence of an economic polarization process in the
Norwegian economy 1981 - 1991. First the data, then some comments
afterwards (sums are nominal, in billions of NOrwegian Kroner, 1 US$ =
7.50 NOK):



Sectors						1981	1991	Growth

Incorporated enterprises:
- total expenditure 				63.3	132.1	2.09
- interest and other dividends:
- - expenditure					30.3	89.8	2.96
- - income					10.1	35.6	3.52

Personal enterprises & self-employed:
- total expenditure				27.1	51.7*	 --
- interest and other dividends:
- - expenditure					4.39	18.3	4.16
- - income					2.07	6.00	2.90

* 51.7 in 1987, 1991 = NA


Households:
- total expenditure 				250.1	596.2	2.38
- interest and other dividends:
- - expenditure					14.0	62.6	4.47
- - income					11.8	42.8	3.63

Financial institutions (public + private):
- total expenditure 				38.4	149.4	3.89	2)
- interest and other dividends:
- - expenditure					30.1	123.7	4.10
- - income					43.2	151.4**	3.50

**peaked in 1988 = 158.8, then large losses afterwards led to
state intervention/rescue operation.

Central government + social security funds:
- total expenditure 				121.5	310.1	2.55
- interest and other dividends:
- - expenditure					9.31	21.2	2.35
- - income					10.8	54.7	5.06	1)


(Source: Norwegian Central Bureau of Statistics)


COMMENTS:

Interest and dividend related cash flows have increased significantly
more than total expenditure in different sectors. However -

These tables do not in fact tell the whole story. Polarization WITHIN
the sectors households, enterprises etc. is hidden. But strong relative
growth both in expenditure and income from interest and dividends in
different sectors indicate increased polarization in society as a
whole, unless one assumes that there exist significantly increasing
numbers of agents both borrowing and saving at the same time. Data
grouping the population of agents into net asset and net debt holders
(regardless of sector) is in fact not easily available, which is
interesting in itself.

Note 1) reflects that the gvt. in Norway has built itself up
during the oil bonanza of the 80ies as the country's biggest rentier(!).
It is among the few gvt.'s in the world having positive net assets.

Note 2) tells that extraordinary growth in income result in
extravagant expenditure among financial institutions.

Now, may one find similar polarization trends in other countries, and
between countries? (The last question seems to have the evident answer
YES, referring to the continuing debt spiral of poor countries).


Cheers,

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| Trond Andresen (Trond.Andresen@xxxxxxxxxxx) |
| Department of Engineering Cybernetics       |
| The Norwegian Institute of Technology       |
| N-7034 Trondheim, NORWAY                    |
|                                             |
| phone +47 73 59 43 58                       |
| fax   +47 73 59 43 99                       |
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