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CHAPTER V
UNEMPLOYMENT
I am glad your friend asked the question, for every workingman
realises how important this matter of unemployment is to him. You
know what your life is when you are out of work; and when you do have
a job, how the fear of losing it hangs over you. You are also aware
what a danger the standing army of unemployed is to you when you are
out on strike for better conditions. You know that strikebreakers are
enlisted from the unemployed whom capitalism always keeps on hand, to
help break your strike.
'How does capitalism keep the unemployed on hand?' you ask.
Simply by compelling you to work long hours and as hard as
possible, so as to produce the greatest amount. All the modern
schemes of 'efficiency', the Taylor and other systems of 'economy'
and 'rationalization' serve only to squeeze greater profits out of
the worker. It is economy in the interest of the employer only. But
as concerns you, the worker, this 'economy' spells the greatest
expenditure of your effort and energy, a fatal waste of your
vitality.
It pays the employer to use up and exploit your strength and
ability at the highest tension. True, it ruins your health and breaks
down your nervous system, makes you a prey to illness and disease
(there are even special proletarian diseases), cripples you and
brings you to an early grave - but what does your boss care? Are
there not thousands of unemployed waiting for your job and ready to
take it the moment you are disabled or dead?
That is why it is to the profit of the capitalist to keep an army
of unemployed ready at hand. It is part and parcel of the wage
system, a necessary and inevitable characteristic of it.
It is in the interest of the people that there should be no
unemployed, that all should have an opportunity to work and earn
their living; that all should help, each according to his ability and
strength, to increase the wealth of the country, so that each should
be able to have a greater share of it.
But capitalism is not interested in the welfare of the people.
Capitalism, as I have shown before, is interested only in profits. By
employing less people and working them long hours larger profits can
be made than by giving work to more people at shorter hours. That is
why it is to the interest of your employer, for instance, to have 100
people work 10 hours daily rather than to employ 200 at 5 hours. He
would need more room for 200 than for 100 persons - a larger factory,
more tools and machinery, and so on. That is, he would require a
greater investment of capital. The employment of a larger force at
less hours would bring less profits, and that is why your boss will
not run his factory or shop on such a plan. Which means that a system
of profit-making is not compatible with considerations of humanity
and the well-being of the workers. On the contrary, the harder and
more 'efficiently' you work and the longer hours you stay at it, the
better for your employer and the greater his profits.
You can therefore see that capitalism is not interested in
employing all those who want and are able to work. On the contrary: a
minimum of 'hands' and a maximum of effort is the principle and the
profit of the capitalist system. This is the whole secret of all
'rationalization' schemes. And that is why you will find thousands of
people in every capitalist country willing and anxious to work, yet
unable to get employment. This army of unemployed is a constant
threat to your standard of living. They are ready to take your place
at lower pay, because necessity compels them to it. That is, of
course, very advantageous to the boss: it is a whip in his hands
constantly held over you, so you will slave hard for him and 'behave'
yourself.
You can see for yourself how dangerous and degrading such a
situation is for the worker, not to speak of the other evils of the
system.
'Then why not do away with unemployment?' you demand.
Yes, it would be fine to do away with it. But it could be
accomplished only by doing away with the capitalist system and its
wage slavery. As long as you have capitalism - or any other system of
labor exploitation and profit- making - you will have unemployment.
Capitalism can't exist without it: it is inherent in the wage system.
It is the fundamental condition of successful capitalist production
'Why?'
Because the capitalist industrial system does not produce for the
needs of the people; it produces for profit. Manufacturers
do not produce commodities because the people want them and as much
of them as is required. They produce what they expect to sell, and
sell at a profit.
If we had a sensible system, we would produce the things which the
people want and the quantity they need. Suppose the inhabitants of a
certain locality needed 1,000 pairs of shoes; and suppose we'd have
50 shoemakers for the job. Then in 20 hours work those shoemakers
would produce the shoes our community needs.
But the shoemaker of to-day does not know and does not care how
many pairs of shoes are needed. Thousands of people may need new
shoes in your city, but they cannot afford to buy them. So what good
is it to the manufacturer to know who needs shoes? What he wants to
know is who can buy the shoes he makes: how many pairs he can sell
at a profit.
What happens? Well, he will manufacture about as many pairs of
shoes as he thinks he will be able to sell. He will try his best to
produce them as cheaply and sell them as dearly as he can, so as to
make a good profit. He will therefore employ as few workers as
possible to manufacture the quantity of shoes he wants, and he will
have them work as 'efficiently' and hard as he can compel them to.
You see that production for profit means longer hours and
fewer persons employed than would be the case if production were for
use.
Capitalism is the system of production for profit, and that is why
capitalism always must have unemployed.
But look further into this system of production for profit and you
will see how its basic evil works a hundred other evils.
Let us follow the shoe manufacturer of your city. He has no way of
knowing, as I have already pointed out, who will or will not be able
to buy his shoes. He makes a rough guess, he 'estimates', and he
decides to manufacture, let us say, 50,000 pairs. Then he puts his
product on the market. That is, the wholesaler, the jobber, and the
storekeeper put them up for sale.
Suppose only 30,000 pairs were sold; 20,000 pairs remain on hand.
Our manufacturer, unable to sell the balance in his own city, will
try to dispose of it, in some other part of the country. But the shoe
manufacturers there have also had the same experience. They also
can't sell all they have produced. The supply of shoes is greater
than the demand for them, they tell you. They have to cut down
production. That means the discharge of some of their employees, thus
increasing the army of the unemployed.
'Over-production' this is called. But in truth it is not
over-production at all. It is under-consumption, because there are
many people who need new shoes, but they can't afford to buy them.
The result? The warehouses are stocked with the shoes the people
want but cannot buy, shops and factories close because of the
'oversupply'. The same things happen in other industries. You are
told that there is a 'crisis' and your wages must be reduced.
Your wages are cut; you are put on part time or you lose your work
altogether Thousands of men and women are thrown out of employment in
that manner. Their wages stop and they cannot buy the food and other
things they need. Are those things not to be had? No, on the
contrary; the warehouses and stores are filled with them, there is
too much of them there's 'over-production'.
So the capitalist system of production for profit results in this
crazy situation:
- (1) people have to starve - not because
there is not enough food but
-
because there is too much of it; they have to do without the things
they need, because there is too much of those things on hand;
-
(2) because there is too much, manufacture is
cut down, throwing
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thousands out of work;
-
(3) being out of work and therefore not
earning, those thousands lose
-
their buying capacity. The grocer, the butcher, the tailor all s, as
a result. That means increased unemployment all around, the crisis
gets worse.
Under capitalism this happens in every industry.
Such crises are inevitable in a system of production for profit. 1
come from time to time; they return periodically, always getting
worse. They deprive thousands and hundreds of thousands of employment
causing poverty, distress, and untold misery. They result in
bankruptcy and bank failures, which swallow up whatever little the
worker have saved in time of 'prosperity'. They cause want and need,
d people to despair and crime, to suicide and insanity.
Such are the results of production for profit; such the fruits of
system of capitalism.
Yet that is not all. There is another result of this system, are
even worse than all the others combined.
That is War.
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