REYKJAVIK Iceland -- President Obama would like Iceland. Geo-thermal energy free health care and high taxes dominate the landscape. Obama would be in his element even if the actual elements are a bit harsh. Iceland is definitely worth a look if you want to understand the presidents vision for America which is why I have traveled here.
In 2008 Icelands three largest banks collapsed after making risky overseas loans. The unemployment rate shot up from less than 2 percent to more than 8 percent -- tame by some European standards but a disaster for this nation of about 325000 people. Even worse per capita income fell from nearly $60000 to $33000.
Icelanders responded by doing little. This is the most isolated nation on Earth and outside of manufacturing aluminum and fishing for cod theres not much moneymaking activity available. The government makes sure that Icelanders pay for their free health care and retirement entitlements by heavily taxing just about everything. For example gas is taxed at just under two bucks a gallon.
On the positive side Icelanders do have cheap heat. This is a volcanic island and geo-thermal energy means the average Icelandic household pays about $100 a year to keep warm. Heat of course is vital. They dont call it Iceland for nothing.
Renewable energy and a pristine environment are Icelands strong suits. The market economy is its weakness.
Many Icelanders emigrate in order to make more money. There is a shortage of doctors here which frustrates the national health care system. Physicians are paid poorly compared to most of the industrialized world so some doctors split as soon as they have their certification. The ones who stay do so primarily out of patriotism.
The brain drain continues in business. With a high income tax a whopping 25 percent value-added tax (7 percent on food and alcohol) and levies on most everything else it is difficult to accumulate wealth. Many Icelanders dont see that as a problem because the government does take care of their essential needs. But if you want a Spring Break in Bermuda you have to have cash. Icelanders dont have much to spare.
I did not see much poverty in Iceland or much conspicuous wealth either. Most folks live in small homes drive reasonable cars dress neatly and speak English (compulsory in schools). On the weekends drinking is a national pastime despite the high cost. But thats not much different from many other places.
Iceland has managed to flatten out its society so most folks have pretty much the same circumstances. The very ambitious leave; the others seem satisfied to live under a security blanket breathing in the clean air and enjoying a relaxed culture.
Obama wants to squeeze some of the excess out of America and to some extent Iceland can show him the way to make that happen. But for me the challenge of life is competing and developing your potential to the fullest.
No way I could ever do that in Iceland. And President Obama couldnt have done it either.
Bill OReilly is host of the Fox News show The OReilly Factor and author of Whos Looking Out For You? and Pinheads and Patriots.
REYKJAVIK Iceland -- President Obama would like Iceland. Geo-thermal energy free health care and high taxes dominate the landscape. Obama would be in his element even if the actual elements are a bit harsh. Iceland is definitely worth a look if you want to understand the presidents vision for America which is why I have traveled here.
In 2008 Icelands three largest banks collapsed after making risky overseas loans. The unemployment rate shot up from less than 2 percent to more than 8 percent -- tame by some European standards but a disaster for this nation of about 325000 people. Even worse per capita income fell from nearly $60000 to $33000.
Icelanders responded by doing little. This is the most isolated nation on Earth and outside of manufacturing aluminum and fishing for cod theres not much moneymaking activity available. The government makes sure that Icelanders pay for their free health care and retirement entitlements by heavily taxing just about everything. For example gas is taxed at just under two bucks a gallon.
On the positive side Icelanders do have cheap heat. This is a volcanic island and geo-thermal energy means the average Icelandic household pays about $100 a year to keep warm. Heat of course is vital. They dont call it Iceland for nothing.
Renewable energy and a pristine environment are Icelands strong suits. The market economy is its weakness.
Many Icelanders emigrate in order to make more money. There is a shortage of doctors here which frustrates the national health care system. Physicians are paid poorly compared to most of the industrialized world so some doctors split as soon as they have their certification. The ones who stay do so primarily out of patriotism.
The brain drain continues in business. With a high income tax a whopping 25 percent value-added tax (7 percent on food and alcohol) and levies on most everything else it is difficult to accumulate wealth. Many Icelanders dont see that as a problem because the government does take care of their essential needs. But if you want a Spring Break in Bermuda you have to have cash. Icelanders dont have much to spare.
I did not see much poverty in Iceland or much conspicuous wealth either. Most folks live in small homes drive reasonable cars dress neatly and speak English (compulsory in schools). On the weekends drinking is a national pastime despite the high cost. But thats not much different from many other places.
Iceland has managed to flatten out its society so most folks have pretty much the same circumstances. The very ambitious leave; the others seem satisfied to live under a security blanket breathing in the clean air and enjoying a relaxed culture.
Obama wants to squeeze some of the excess out of America and to some extent Iceland can show him the way to make that happen. But for me the challenge of life is competing and developing your potential to the fullest.
No way I could ever do that in Iceland. And President Obama couldnt have done it either.
Bill OReilly is host of the Fox News show The OReilly Factor and author of Whos Looking Out For You? and Pinheads and Patriots.
