Norway economists and politicians clash over cost-of-living claims

A debate on the Norwegian broadcaster NRK regarding the country’s private finances has sparked significant disagreement between politicians and economists. Red Party leader Marie Sneve Martinussen criticized economists for dismissing the struggles of those with low incomes, stating she feels “nauseous” when high-earning bank economists suggest that having little money is merely a feeling.

However, data from Statistics Norway (SSB) contradicts the notion of a widespread “cost of living crisis” (dyrtid). According to SSB, the period is characterized by moderate real income growth, meaning most people can purchase more with their wages in 2024 than they could in 2021. The agency also noted that cost-of-living increases have not disproportionately affected low-income households compared to higher-income ones.

Following the broadcast, several economists expressed concern over the tone of the debate. Chief economist Frank Jullum described the treatment of experts as “disturbing,” alleging that objective facts were met with personal attacks and harassment from both the far-right and far-left. Other economists, including Kjersti Haugland and Olav Chen, echoed these concerns regarding the integrity of professional experts in political discussions.