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Category Archives: Economics & Business

Basic income: actually a bad idea

Recently, talking about a basic income has become, so to speak, fashionable. The Dutch Bureau for Economic Analysis has calculated the effects of such a basic income, but argued that it would be a bad idea. Without the equations, but with qualitative arguments, I shall try here to explain why a basic income does not bring the benefits we hope to see from it and why the results of the experiments that so far took place are not reliable.

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The Revival of Dutch Wage Growth

The last couple of years, a number of institutions spoke out on the low wage level in the Netherlands. The Dutch Central bank already indicated a number of times that companies have room to increase wages. This claim is confirmed by the Central Planning Bureau. Even the IMF points out that labor wages are relatively low in the Netherlands.

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The BoFEB-traineeship

September 1st, I started the BoFEB. This article will give you a short introduction into what the BoFEB (Beroepsopleiding Financiaal-Economisch Beleidsmedewerker, or entails and, more importantly, how to get in.

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“This time is different” – how bail-ins should relieve taxpayers’ money

During the Financial Crisis of 2008 taxpayers’ money was frequently used to save banks from bankruptcy. In the Netherlands ABN-AMRO and SNS Reaal were bailed out by the government for the staggering amounts of 22 billion and 3.7 billion euro respectively. Moreover, the Irish government came into severe trouble after saving their financial infrastructure from the abyss. These rescues caused governments to take the full blow, resulting in a “free lunch” for banks’ shareholders and bondholders. As a result, taxpayers (and politicians too) were disappointed in and angry with those “irresponsible bankers”.

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Is Bitcoin condemned to be the next speculative bubble?

With a market cap of approximately €87.4 billion and a current all-time high price of €5270 (Wilmoth, 2017),  Bitcoin’s price and success seem to be heading through the roof and beyond. While hitting the €1000 mark in mid-January , the price has since increased with almost 430%. Taking into account these  extraordinary numbers, the main question arises whether Bitcoin will be the next speculative bubble.

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This Old Guitar Gently Weeps

As the guitar gods slowly die out, so do their guitars. The annual revenue of Gibson, the company that produced the iconic ‘Les Paul’ guitar, has fallen from $2.1 billion in 2014 to $1.7 billion (Edgers, 2017). Fender, who makes the ‘Stratocaster’, has seen total revenue fall from $675 million to $545 million (Edgers, 2017).