Passive income is a myth. To a first approximation, at that scale it doesn't really exist. Someone has to actively manage the investments.

And even with good management, the investment income is nowhere near enough to live on. Especially not in an expensive country like Norway.

The State Pension fund Outland (Direct translation) is managed by the Norwegian Bank, and has grown a lot over the years. The staten has a policy og never spending above a certain percent of the fund, witch has shown to be below the growt rate. On a nation level it is basically passive income. However with the increase, the influx from the fund to the state budget some says leads to increased Inflation in later years.

On a side note, just because the state has money, dosent mean every person is personally rich. Just that being poor dosent have to suck as hard or permanent with social policies like free healthcare and education.

lol thats not the reason. you're basically correct that passive income doesnt exist at scale, but it isnt because of active management. it's because passive income is very literally getting money from other people's work. you need to have a lot of people still working to support passive income