Less Tax and More Welfare: The Political Economy of The Norwegian Progress Party

While the nativist and authoritarian position of right-wing populist parties are well documented, less is known about their economic policy. This chapter focuses on one of the most successful right-wing populist parties in contemporary post-industrial societies, namely the Progress Party in Norway. Based on party manifestos and surveys among the middle-level elite and the voters since the early 90’s, it is demonstrated that the Progress Party holds a somewhat paradoxical position in economic policy combining neoliberal populism (i.e. less taxes) with social populism (i.e. more welfare, particularly to ‘those who built the country’). The party justifies its policy not only by reducing “unnecessary bureaucracy” and advocating welfare chauvinism, but also by arguing in favor of spending more of Norway’s large Petroleum Fund. The analysis also demonstrates strong internal tension between a ‘spending faction’ and a ‘tax cut faction’. This internal ideological battle may increasingly intensify now the party entered government.