Employment Won't Work Without Unemployed

Chronicle (Levin), 7 June 1949, Page 5

Employment Won't Work Without Unemployed

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^ . > 7 ■tv *-> -- «r Received Monday, 7.5 p.m. LONDON, June 6. Tlie opinion that a moderate degree oi unemployment in Britain would do a great deal of good beeause it m-ight compel a reduction in costs of production, is expressed editorially by T.he Economist. "This journal is in the fortunate position of not having to. stand upon the hustings and it therefore requires no_ courage_ to reeord this belief," says the article. "Two conditions — which will be ignored by all who will seream at the statement — are that the unemployment does not exceed 5 to 7 per eent of the insured population and that the total does not include many pockets of fr, heavy Or long continued unemployment. "The main reason for this belief is that a reduction irq British - costs of production .is absolutely necessary if the country is to be 7 able to buy enough food and raw materials to be able to live and work. It has always been recognised that a state of full employment will lead only to woe if it is not accompanied by a much great er sense of responsibility. on the part of trades unions— and also, to be fair— of the trade associations. "Yet if one judges, not by words uttered by the leaders but by the actions of their followers, it is impossible to believe that any progress has been made in cultivating this sense of responsibility. "In conditions of overfull employment, labour costs are pushed steadily upwards and since this means ruin for the country, the reasonable man simply cannot stancl aside and hope for a continuation of present conditions. If he can reason straight, he must hope for the creation of conditions in which labour costs can at least be stabilised and if possible reduced. "It is now abundantly elear that those conditions will not arise out of goodwill for the Labour Government or a desire to serve the community. They require the existence of some degree — one must still hope that a mild degree would be enough— of external pressure on the labour market. As T^c Economist has said more than once in the past, full employment will not work without a million unemployed."