Is the Norwegian Oil Fund a Socialist Idea?

Or is it simply prudent capitalist thinking put into practice?

Recently I wrote about what happens when Norway runs out of oil? Will it be the end of the social democracy and the welfare state? In it I discuss how Norway stashed away oil money for a rainy day, what is known as the Norwegian Oil Fund worth of a trillion dollars.

Not everyone agreed in my characterization of countries and states following capitalist ideology blowing their money instead of saving it. Jim Roye writes:

Despite your bemoaning “capitalist ideology”, Norway has used a very (economically) conservative method of funding social programs. All that interest the fund earns that you wrote about IS capitalism.

To respond to this I need to be a bit more precise in how I use my vocabulary. Capitalism as we know is not an ideology, strictly speaking. It is simply a description of an economic system. What type of economic system? Capitalism is a free market system where society is divided into a small rich capitalist elite owning most of the means of production (factories, farms, warehouses) and a majority employed as workers.

Capitalism as an Ideology

However such a definition says very little about the beliefs and motivations of those who promote such a system today. While capitalism is really just an economic system, it has also become an ideology to many. It is not merely a description…