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5.0 out of 5 stars
Concern for the 99%,
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This review is from: Production, Income, and Welfare: The Search for an Optimal Social Order (Hardcover)
Tinbergen, Jan 1985: *Production, Income and Welfare: The Search for an Optimal Social Order,* University of Nebraska Press, Lincoln and London. Primarily cited for its support and refinement of the Gottschalk 1978 analysis of the pay of workers relative to their productivity. Like Gottschalk, Tinbergen finds that sales and managerial workers are overpaid by about 2 to one, relative to their productivity. Tinbergen makes clear that this amounts to these categories of workers having a negative productivity. Tinbergen adds farm and white collar workers to the analysis, and analyzes data for Japan as well as for the U.S. Farm workers are also negative producers, along with blue collar workers and sales personnel. Managerial personnel contribute essentially nothing to output, in Tinbergen's analysis. Part of his analysis is based on counter-productivity, that is, many of the activities of sales personnel, for example, are directed at tearing down the sales activities of other firms; the same applies to management, as it goes for market dominance by whatever means are needed to attain it. Tinbergen finds that there is a value to society of competition, but a cost also. P. 12 he cites the famous Nordhaus and Tobin 1972 opus, noting that they find that advertising and similar waste reduced GNP by about 25% in 1969. He has many insights into welfare, public goods, demand revelation, etc., e.g., he cites public schooling as a quasi-public good, and therefore overdemanded and overproduced, as Jasay 1989 also does. See Borjas and Ramey(VA) 1995 for the impact of imports on wage inequality. See Frederick C. Thayer "An End to Hierarchy, an End to Competition" for a devastating treatment of the harmful effects of competition. from my book PQOLVOL1. colbert2422
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