Yours sincerely,
Thomas H.A.M. Cool (Thomas Colignatus)
Scheveningen, The Netherlands
http://www.dataweb.nl/~cool
cc. Mr. Auke van der Berg
Dutch University Press / Rozenberg Publishers / Thela Thesis
Bloemgracht 82hs, 1015 TM Amsterdam, The Netherlands
Book Cover Text
ECONOMICS – POLITICS – LAW
This book explains why the world economy enjoyed a golden period in the years 1950-1970 and what went wrong since then. Europe in 2005 has a (hidden) unemployment of 10% and relies on an extensive benefit system to prevent poverty. The US has less unemployment but at the price of more poverty – making Europe reluctant to adopt that model. The world as a whole is a political and economic mess with much and extreme human suffering. Policymakers explain developments by causes such as globalisation, technology and welfare state sclerosis. Those explanations are not convincing however since trade and technology are sources for welfare, while the only answer to poverty is a well managed welfare state. This book provides an explanation based upon a new approach.
When democracies fail to care for their citizens, the cause must be looked for in the political system. The cause for the present failure can be found in the Trias Politica structure of national decision making – the separation of powers of the Executive, Legislative and Judiciary branches of government. This structure gives too much room for political elites and bureaucrats to neglect the basic rights of the population at large. This approach provides an extension and follow-up to the "General Theory" of John Maynard Keynes. Inclusion of economic decision making into the analysis gives a truly General Theory of Political Economy. The theory shows that a constitutional amendment for an Economic Supreme Court is required – for logical reasons, for the experience of the whole 20th century, and for an actual improvement of real democracy which is so much needed for the 21st century.
An example of the policy failure is the curious phenomenon of the Tax Void. The tax void is the income range between the net and gross minimum wage. Since people may not work below the gross minimum, those affected don’t earn income and don’t pay taxes. The taxman intends to collect taxes in that range, but since there are no earnings there, he doesn’t collect anything. The tax code only drives up the gross minimum wage, causing unemployment and the associated benefit burden. Abolishing that tax code would, since there are no revenues, not cost anything either – and create jobs. During 1950-1970 net minimum wage workers were hardly taxed and such taxes were gradually introduced. Policy makers have been oblivious to this issue and have actually been neglecting sound economic advice on it.
Historical description of the last decades – Novel contributions to economics, politics and law – Mathematical theorems and proofs – Empirical data and charts – Explanations for a larger public – Solution to Arrow’s Theorem on social choice – Methodological exposition – Results related to other authors.