ABSTRACT
When K. W. Kapp’s landmark book on The Social Costs of Private Enterprise was published (Kapp 1950), post-war economic growth was in its take-off stage in Western countries. Under these circumstances, limited attention was paid to his message. Neither ecological nor social and psychological costs of an expanding market driven by private enterprises were discussed, and the axiomatic assumption of economic theories that people act according to the norm of ‘homo oeconomicus’ remained unchallenged. Within the past five decades far-reaching changes took place at the level of economic and political development, and these changes had, and continue to have, a major impact on economic and labour market policy. Among these changes the following ones are particularly noteworthy:
1) The transformation of labour markets in western societies from full employment into labour shortage, in combination with a shift from employment in industry to the service sector.
