Date: Thu, 02 Dec 2004 15:19:19 +0100
From: Thomas Colignatus / Thomas Cool <>
Subject: Bijdrage voor NAKE bulletin

Geachte dr. Ligthart,

Misschien wilt u onderstaande bijdrage overwegen voor opname in NAKE bulletin. Wanneer u het opneemt dan ontving ik gaarne een kopie - want ik sta ter vermijding van information-overload niet op de mailinglist.

Met dank voor de geboden mogelijkheid en vriendelijke groet,

Thomas Colignatus / Thomas Cool


Contribution to the discussion on the KVS-Preadviezen
"Innovatie in Nederland. De markt draalt en de overheid faalt"
KVS meeting December 10 2004
Location Ministry of Economic Affairs, The Hague 14:15 -18:00 hours

By Thomas Colignatus, December 2 2004

The editors of the preadviezen, Jacobs and Theeuwes, argue that the EU Lissabon Strategy of aiming for both productivity and social cohesion is inconsistent, and that Holland and the EU have to choose between either productivity (including innovation and growth) or social cohesion (including social security and labour market provisions). This proposition can be depicted in graphical format. Take the x-axis of productivity and the y-axis of social cohesion (both properly measured), and consider the Production Possibility Curve. The authors argue that Holland and the EU are already at that frontier, and that the optimum requires a choice in either direction.

However, in my book "Definition & Reality in the General Theory of Political Economy" (DRGTPE), of which a second edition will appear in January 2005 at Dutch University Press, and of which a non-printable PDF can be found on my website already, it is shown that Holland and the EU are at an inefficient point below the PPC. This allows a win-win solution with existing preferences.

The book DRGTPE also explains that this win-win solution is blocked by censorship of information. What is required is a constitutional amendment for the creation of an Economic Supreme Court that safeguards the scientific quality of the information used for policy making. One way to achieve this is to have a parlementary enquiry into the preparation of economic policy making.

DRGTPE provides a new synthesis for economics and can be seen as the follow-up in Political Economy on Keynes's "General Theory". It is important that not only the economy but also economic science is open to innovation.