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- Title
GROEIZAAM FINANCIEEL BELEID.
- Authors
Glasz, Ch.
- Abstract
Economic growth, and the level of savings required to finance it, have increased in the Netherlands since the second world war to a considerably larger extent than could reasonably have been expected. The Netherlands are among the countries which, after the period of recovery and economic revival, have become under the spell of the idea of economic growth. The country was able to realize this growth by using an amount in the order of magnitude of 20 per cent, of its national income (calculated at market prices) for the formation of capital. This percentage was attained thanks to the fact that savings of private individuals were largely supplemented by government savings, by business savings (effectuated through keeping appreciable portions of net profits in the business for the purpose of strengthening reserves), and by forming (or enlarging the amount of) funds, set aside for carrying out arrangements made for the payment of old age pensions, widows' pensions and the like. More than half of the above-mentioned total of 20 per cent, was due to savings of these three kinds. As such savings are often not felt by private individuals as sacrifices, they may be called disguised or veiled savings. The author pays special attention to government savings. They have been a permanent feature in the Netherlands since the end of the war; and they have contributed to no small extent towards financing economic growth. They emanated from surplusses of current central government income above current central government expenditure, and enabled the central government to finance important investments, also for the account of local authorities. For the year 1960 a savings quota of 23 per cent, of the national income was registered. Since then the percentage has gone back to 17¼ per cent, in 1963. In the meantime impulses towards economic growth have gained strength. With a view to this development the government recommends serious endeavours directed to re-establishing a savings quota of 23 per cent, of the national income. Given the strong tendency towards increased consumptive spending which has made itself felt during the last few years, the author realizes that this is a desideratum, by no means easy to be fulfilled. He does not, however, consider its fulfilment as a task which cannot be accomplished.
- Subjects
NETHERLANDS; ECONOMIC development; SAVINGS; NATIONAL income; FLOW of funds; FINANCE
- Publication
De Economist (0013-063X), 1967, Vol 115, Issue 1, p1
- ISSN
0013-063X
- Publication type
Article
- DOI
10.1007/BF02185172