Professor Magne Mogstad believes a new commission should investigate the state’s spending during the pandemic. Business owners must also bear the risk if things go badly, he says.
“In reality, such policies are transfers from the community to capital owners,” Magne Mogstad, a professor at the University of Chicago, told E24.
Norwegian top officials received millions in secret bonuses, and half of the companies that received cash support last year increased their annual results from 2019 to 2020.
Business owners can not only reap the rewards when things go well. They must also bear the risk if things go badly, he believes.
“Reason to be concerned”
“There is every reason to be concerned that there has been a broad political agreement that taxpayers should compensate capital owners for financial losses, whether it is due to a fall in oil prices or a decline in household demand due to the risk of infection,” he told the newspaper.
The government has set up several expert committees and commissions that have looked at economic policy, Minister of Finance Jan Tore Sanner (H) said.
“The government has always been concerned with feedback from experts and others regarding the economic policy during the pandemic, both for designing measures along the way and evaluation in retrospect,” he said.
Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance
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