Nicolai Tangen, CEO of Norges Bank Investment Management, asserts that Americans generally show a higher passion for work due to cultural influences. With data analyses backing his argument, Tangen points out that Americans usually work longer hours and take fewer vacations than their European counterparts.
The US work culture is driven by a resilient and adaptable approach towards failure, viewing it as a stepping stone to continuous learning and improvement. It is this viewpoint of failure, according to Tangen, that promotes innovation and risk-taking – crucial elements of American economic and technological advancement.
An examination of work hours between Americans and Europeans proves that cultural, economic, and social habits significantly influence employment routines. In 2022, Americans aged 22 to 65 worked an average of 38 hours a week, whereas workers in Greece and Poland worked longer hours. Conversely, Germany and the Netherlands reported shorter work weeks, reflecting cultural variances in work-life balance.
Despite his admiration for the American work culture, Tangen criticises the large executive pay packages, terming them as akin to “daylight robbery”.
US work ethos drives economic growth: Norges CEO
However, he does acknowledge the stringent laws surrounding paid leave in the United States, highlighting how they can cultivate different attitudes towards work compared to European norms.
Norges Bank’s investment patterns reflect Tangen’s respect for the American work culture. Investments in U.S. based companies have risen substantially over the past decade, reaching 46.9% from less than 30%. The strong performance of the American stock market in recent years makes the shift in focus a profitable one. It also shows the bank’s confidence in the financial stability and growth potential of American businesses.
The strategy driving the bank’s support for burgeoning American companies is centered around long-term growth rather than short-term political happenings, such as the 2024 U.S. presidential election. Presently, 12% of Norges Bank’s equity assets lie in the Magnificent 7 holdings, showing Tangen’s confidence in the growth prospects of these firms. Norges Bank plans on taking an active role in contributing towards technological advancement, market competitiveness, and operational efficiency of these companies.
Despite any impending political events, Tangen and Norges Bank remain committed to supporting and fostering growth among successful American companies.
