History of the United Co-operative Baking Society Ltd. : $b A fifty years' record 1869–1919Reid, William
History
History of the United Co-operative Baking Society Ltd. : $b A fifty years' record 1869–1919
Reid, William
United Co-operative Baking Society, Ltd., Glasgow
UNEMPLOYMENT.
Unfortunately, during the years 1904–1905 there was a very severe
economic crisis which was the cause of widespread unemployment, and
Glasgow and the West suffered severely. Such economic crises had been
periodic during the past century, and differed materially from those
which occurred in earlier centuries. Until the beginning of the
nineteenth century economic crises were really due to actual scarcity of
foodstuffs, and people went hungry as much because there was not enough
food to go round as because they had no money with which to buy their
share of what there was. Thus, in Scotland, until about the close of the
Napoleonic wars, the periods of comparative plenty or of scarcity
depended largely on the character of the seasons. While it is true that
the common people were always in want, in bad seasons they died of
starvation.
With the coming of the industrial era, however, there took place a
gradual change. While prices still depended on the seasons, and were
moderately or extravagantly high as the seasons were good or bad, there
entered into the problem a new factor, and the people became poor and
were unable to purchase _because they had produced too much_ and there
was not an effective market for the goods. As it has been tersely put:
“The shoemaker’s children went barefoot because their father had
produced too many boots; and the tailor’s, naked, because he had made
too many clothes.”
This was a new phenomenon for which history provides no parallel, and it
has persisted, ever increasing in intensity, until towards the end of
the first decade of the twentieth century as many as 42 per cent. of the
breadwinners in a respectable working-class district in the East-End of
Glasgow have been found to be unemployed at the same time.
These periods of unemployment seem to be in the form of more or less
regularly recurring cycles. There is first a gradually increasing
inflation of the volume of trade. New works are started, old works are
enlarged, and everywhere there is a boom, until the zenith is reached.
Then comes a gradual slackening off. The supply of goods has outstripped
the limits of effective demand and sales gradually decline as warehouses
become full. The rate of slackening increases; statisticians begin to
watch the rapidly ascending unemployment curve, which in itself does not
record the full slackening, as many workers are on short time. This
increase of unemployment still further weakens the effective demand for
goods and still further accelerates the growth of unemployment, with the
result that in about another year the unemployment crisis is reached,
soup kitchens and relief works open; thousands of hitherto steady
workmen become derelicts—and the huge commercial and industrial concerns
take advantage of the slackness to squeeze small rivals out of business
or to swallow them up, while at the same time improving their own
machinery of production.
Public-domain text, read in full here on John Shaqi.
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