THE ECONOMIC AND SOCIAL OUTLOOK: The Intelligent Man's Guide Through World Chaos
| DOI | http://doi.org/10.1111/j.1467-9299.1932.tb01863.x |
| Author | G. D. H. Cole |
| Date | 01 October 1932 |
| Published date | 01 October 1932 |
Reviews
THE ECONOMIC
AND
SOCIAL
OUTLOOK
The
Intelligent
Man’s
Guide
Through
World
Chaos
ACCORDING
to the author
“this
book
is
an attempt,
within
the
compass of
a
single volume, to give the intelligent and open-minded
citizen, who wants to understand how the world has got into
its
present plight but possesses no special economic training, the means
of unravelling
in
his own mind the tangle
of
world economic affairs.”
And
it
is
an attempt which succeeds. But this intelligent, &c.,
citizen-more usually named the general reader-is much more
interested in how to get out
of
the present plight than in how he got
into it.
Mr.
Cole endeavours to meeet
this
demand also and
to
justify the preposition
“
through
”
in
his
title.
Within the last few months another distinguished writer,
Sir
Arthur Salter, has successfully essayed
a
similar task, and the wise
general reader
who
reads both books
will
find the comparison
interesting.
Probably the first thing that will strike him
is
the close parallelism
in the analysis
of
technical matters. For instance in their explana-
tions of the currency and credit problems, reparations and inter-
national war debts; tariffs, &c., the
two
authors walk hand in hand.
Similarly both are convinced
that
the post-war endeavour to return
to pre-war normalcy has been disastrous and that the present crisis
marks the end of an economic era.
There are, however, significant differences
in
their analysis of
the main features of the old r&ime, the foundations being prepared
for
a
new economic structure of society, and consequently
in
regard
to the structure to be erected on those foundations.
To
Sir
Arthur Salter
“
the distinctive feature of the system, which
we need to emphasise as
it
passes from us, was
its
self-regulating and
automatic quality. Over the whole range of human effort and
human need, demand and supply found their adjustments without
anyone estimating the one or planning the other. The individual
producer pushed and groped his way to
a
new or expanding market.
He rarely troubled to guess the total demand for
his
product; for
the share of the market which he could capture was more to him
than the total market in which he had to find his place.”
Mr.
Cole attaches great importance to this feature but he does not
regard it
as
the hub of the old economic system.
His
view
is that
‘I
under the system known as private enterprise profit is the only
422
By
G.
D.
H.
COLE.
(Published by Victor Gollancz Ltd.)
Price
5s.
possible means of getting
goods
and services produced; for all other
forms
of
income, though they are equally the means of living to their
recipients, make their appearance
in
this system as costs and there-
fore as deterrents and not incentives to production. It is true that
monetary incentives may be offered to wage and salary earners in
order to induce them to increase their output; but whether their
doing
this
will
result in increased production or
a
diminished volume
of employment depends on the prospects of profits as estimated by
their employers. Profit remains the pivot
on
which the entire system
turns.”
Then
as
to the foundations of the new economy Sir Arthur believes
that
“
we need but the regulative wisdom to control our specialised
activities and the thrusting energy of our sectional and selfish
interests,” and in his survey of world conditions he attaches great
importance to the framework of international institutions which have
been developing since the war.
“
Within this framework, itself based
upon
assured world peace,
a
framework at once strong and flexible,
of
a
monetary system of credit, of world commercial policy, of
industrial organisation and of world government, man can
at
last
develop fully, and utilise justly, the resources now available to him.”
Mr. Cole’s attitude towards these developing international
institutions is that they are essential to the relationship of Capitalism
“
the main task for those who believe in the rehabilitation
of
Capitalism is to guard it against the consequences
of
international
disharmonies and lack
of
organisation.
If
Capitalism is to be
reconstructed in the world as a whole it must be reconstructed on
3
world basis and mainly by measures of an international scope.”
But
Mr. Cole does not believe in the rehabilitation of Capitalism.
In the first place
it
is not desirable, and even
if
it were desirable its
permanent recovery is scarcely possible. He insists that
“
whatever
is to be done must be done quickly if it is
to
be done at all. And
the slow-moving machinery of international conferences and negotia-
tions must be tremendously speeded
up
if
it
is to be used with any
chance of success. Cumulatively the entire programme of capitalist
reform involves
so
many obstacles and invites the hostility of
so
many
vested interests, national and sectional, that its adoption as a whole
seems infinitely unlikely and remote.”
“
Socialism,” on the other hand,
“
is
forced to be national in
its measures
.
. . .
the world cannot
.
.
.
.
.
have international
economic planning
,
.
.
.
Then
as
to the goal of our endeavours, Sir Arthur declares:
“
Mine
is
no distant
or
ideal Utopia, beyond either the vision or the
reach
of
the pedestrian.
I
have taken the system we know,
sug-
gesting
how
it
miqht
be strengthened where it
is
weak, repaired
where
it
has crumbled, and rebuilt where new needs require addi-
423
National planning comes
first.”
To continue reading
Request your trial