| Abstract: | Summary Incomes policy is defined as that part of government activities which is directly and wittingly engaged in the formation and the distribution of incomes. The results of such a policy are limited by market forces, but it is surely possible for the government to influence the distribution of earning capacities, the market system and the formation of incomes.The aims of incomes policy are twofold. Firstly, to achieve economic equilibrium,i.e., full employment, internal and external monetary equilibrium. Secondly, a more  reasonable income distribution, which may be translated as: more equality on the condition that the national product (productive strains and savings) is not reduced too severely.Because other instruments are insufficient, incomes policy is indispensable to restrict inflationary pressures. If a more equal distribution is thought to be desirable, too, this kind of policy is necessary, because in peacetime automatic distributive changes are only very small.Incomes policy may be devided into three parts. Firstly (and most radically), the redistribution of earning factors and capacities, especially capital, market power and education. Secondly, measures with respect to factor payments, of which wages policy is an important part. Guidelines have proved not to be sufficient. Thirdly, income transfers, a typically welfare-state instrument of only limited importance.On these subjects a number of rather detailed proposals are made. It is stressed, however, that the definite choice of measures and priorities is a political one.Openbare les uitgesproken ter gelegenheid van de aanvaarding van ambt van lector in de economic aan de Rijksuniversiteit to Groningen op dinsdag 19 maart 1968. |
