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It was believed that an increase in the real wages and social benefits would imply a further rise of unemployment. Moreover, it was predetermined by the government that the country could only recover from the economic downfall of the 1970s if free entrepreneurship and the functioning of market mechanisms would be restored. Gradually social policy lost its position as a more or less independent domain. It became the servant of economic policy as it was strongly believed that once the aim of a healthy economy was reached, social and economic deprivation would consequently vanish.
In the 1980s the reduction of public expenditures became a keystone of Dutch socio-economic policy, partly to decrease a growing budgetary deficit of the state, partly to reduce the costs of labor as many social insurances were paid for by employers' and employees' contributions...
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