Unless we suppose an increased demand for chairs, the result is that A's chairs displace those of B in the market, and B is thrown out of employment.

Thus A, assisted by the Salvation Army, has simply taken B's work.

If the Salvation Army now takes B in hand, it can engage him in useful work on condition that he takes away the work of C.If match-makers are thrown out of work by trade conditions, and the Salvation Army places them in a factory, and sells in the open market the matches which they make, the public which buys these matches abstains from buying the matches made by other firms, and these firms are thus prevented from employing as much labour as they would otherwise have done.

No net increase of employment is caused by this action of the Salvation Army, and therefore they have done nothing towards the solution of the unemployed problem.

They have provided employment for certain known persons at the expense of throwing out of employment certain other unknown persons.