Labour policy—false and true : $b A study in economic history and industrial economicsMacassey, Lynden Livingston
History
Labour policy—false and true : $b A study in economic history and industrial economics
Macassey, Lynden Livingston
Industrial policy -- Great Britain; Labor economics -- Great Britain; Labour Party (Great Britain)
If workers are employed to produce commodities and services, and nobody
wants to buy them, it is obviously absurd to place workers on that class
of production. On the other hand, if they are called upon to produce
commodities and services which people do want and are prepared to buy at
a remunerative price, those goods and services can, and ought to, be
provided by the ordinary machinery of industry which is normally engaged
upon their production; to put unemployed upon that work is merely to
compete with, and undercut, those workers who are ordinarily engaged upon
that species of output, and throw them out of employment, making the case
no better than before. The truth is, as Mr. Harold Cox so forcibly puts
it in _Economic Liberty_, p. 74:
“It becomes clear that we cannot increase the sum-total of paid
employment unless we also increase the volume of commodities
and conveniences which all men want. None of the schemes ever
proposed for State employment for the unemployed do this. They
are all designed not to produce things that somebody wants,
but to provide an excuse for paying wages to people who cannot
find work. In every case the work is made for the sake of the
workman, and that very fact implies that the work is not wanted
for its own sake.”
That brings us directly to the question of “relief works.” The only
economic justification for them is, that when, on humanitarian grounds,
payments have to be made out of public or municipal funds for the
maintenance of unemployed persons and their dependants, it is better,
instead of giving a dole without requiring any work, to ask for work
which may confer some benefit on the community paying wages for it. The
irony of the position is that the Trade Unions always ask that the wages
paid shall be full Trade Union rates, forgetting entirely that the work
is not remunerative work and that it is not at the time wanted by the
community, but only provided by the community at an economic loss.
The Farm Colony Fiascos
We have had some experience of attempts to provide “remunerative work.”
Public-domain text, read in full here on John Shaqi.
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