Changes

====Welfare state====

====Welfare state====

[[File:Harbour of Hamnoy Norway.jpg|thumb|300px|Harbour of Hamnøy.]]

[[File:Harbour of Hamnoy Norway.jpg|thumb|300px|Harbour of Hamnøy.]]

The Scandinavian countries first established strong welfare states in the 1920s and 1930s. Benefits for the middle as well as lower classes became lavish, and Social Democrats raised income taxes until they became the world's highest. Despite this, Norway (and the rest of Scandinavia) retained private enterprise. Unlike France, England, and Germany, Scandinavian states owned and ran very few companies other than public utilities and railroads. Across Scandinavia the major sompanies like Saab, Ericsson, Nokia, and Volvo have always belonged to stockholders.

The Scandinavian countries first established strong welfare states in the 1920s and 1930s. Benefits for the middle as well as lower classes became lavish, and Social Democrats raised income taxes until they became the world's highest. Despite this, Norway (and the rest of Scandinavia) retained private enterprise. Unlike France, England, and Germany, Scandinavian states owned and ran very few companies other than public utilities and railroads; across Scandinavia the major companies like Saab, Ericsson, Nokia, and Volvo have always belonged to stockholders.

The Norwegian Labor Party won a majority in 1945, a time that required cooperation among Norwegian political parties for national reconstruction after the German occupation. Labor Party leaders were willing to recognize a role for privately owned business and for market forces in economic planning both on pragmatic grounds and because party leaders in exile in London during the war had seen successful cooperation between British industry and government. The Labor Party acknowledged that private ownership was more effective than state management in improving efficiency. The state's role expanded in the direction of redistributing, rather than producing, national wealth. Although the Labor Party moved toward democratic socialism, the tension between broader participation, particularly by workers in management, and effective planning persisted into the 1970s.<ref>Trond Bergh, "Pragmatic and Democratic Socialism: Ideological and Political Trends in the Norwegian Labour Party during the 1940s and 1950s." ''Scandinavian Journal of History'' 1991 16 (3): 205-213.</ref>  

The Norwegian Labor Party won a majority in 1945, a time that required cooperation among Norwegian political parties for national reconstruction after the German occupation. Labor Party leaders were willing to recognize a role for privately owned business and for market forces in economic planning both on pragmatic grounds and because party leaders in exile in London during the war had seen successful cooperation between British industry and government. The Labor Party acknowledged that private ownership was more effective than state management in improving efficiency. The state's role expanded in the direction of redistributing, rather than producing, national wealth. Although the Labor Party moved toward democratic socialism, the tension between broader participation, particularly by workers in management, and effective planning persisted into the 1970s.<ref>Trond Bergh, "Pragmatic and Democratic Socialism: Ideological and Political Trends in the Norwegian Labour Party during the 1940s and 1950s." ''Scandinavian Journal of History'' 1991 16 (3): 205-213.</ref>