20-05-2019: The debate about the industrial concentration
Author: E.A. Bakkum
Of old the social-democracy has defended the opinion, that the economy is subject to the progressing concentration of industries. More and more combinations (trusts and cartels) were supposed to form, which would lay the foundation for political imperialism. The present column studies this doctrine by means of two sources, namely Trusts en kartels by F.M. Wibaut and Das Finanzkapital by R. Hilferding. Their prediction is compared with modern economic ideas about collusion and concentration. Although it is true that often the perfect competition is absent, the apocalyptic vision of the future is totally unsound .... Read more
30-04-2019: Behavioural economics
Author: E.A. Bakkum
Behavioural economics offers a useful supplement to happiness economics, which is already prominently present on this portal. This column discusses behavioural economics by means of the book An introduction to behavioral economics by N. Wilkinson. First, the phenomenon of the bounded rationality is explained. Next, several special themes are studied, notably the portfolio management, irrational preference functions, altruism and resentment, and the discounting of time preferences. The conclusion is that the homo economicus in traditional economics is irreconcilable with the psychological insights .... Read more
20-04-2019: The mission of the trade union movement
Author: E.A. Bakkum
Since more than a century the trade union movement is an institutional factor in the functioning of the labour market. She is a cartel of workers. The present column analyzes the capability of the movement to influence the labour market. First, the expectations of the founders of the trade union movement are discussed (here personified in Jan Oudegeest). Next the true social position of the movement is studied, first after half a century (in the late sixties), and subsequently after another half of a century (at present). Finally a subjective perspective of the trade union movement is sketched briefly .... Read more
22-03-2019: Economic planning by the state
Author: E.A. Bakkum
On this webportal many models of state intervention in the economy have been described. The present column consults the work of Jan Tinbergen in order to show that state intervention is often inevitable. The state formulates policy goals in order to optimize the welfare of its citizens. A plan is designed for the realization of these goals with the available policy instruments. The planning makes an intensive use of models. The convergence theory of Tinbergen is also discusses, as well as the comments of the economist Hans van den Doel (mainly known from Nieuw Links) .... Read more
10-03-2019: Annotations regarding the public branch-corporations
Author: E.A. Bakkum
This column complements a previous discussion about the public branch-corporations (publiekrechtelijk bedrijfsorgaan, in short PBO) with many annotations, They show that the input of individuals influences the political developments. Among the leaders are J. Veraart, D.U. Stikker, E. Kupers, W. Drees and H. Vos. The position of the trade unions during the German occupation in 1940-1945 is discussed extensively. During this period the Foundation of Labour (Stichting van de Arbeid) is formed. There is also an analysis of the ideas of the social-democracy and the roman-catholics immediately after the liberation. Finally, the opinions of present-day politicians with regard to the PBO are summarized .... Read more