[Problems of Poverty by John A. Hobson]@TWC D-Link book
Problems of Poverty

CHAPTER VII
22/26

Indeed, it might be urged that a larger amount of unemployment is caused in this case, for persons who now pay 3d.

for matches which they formerly bought for 21/2d., will diminish their expenditure upon other commodities, and the result will be to diminish employment in those industries engaged in supplying these commodities.

Here is another "unseen" result of fallacious philanthropy.
The inevitable result of the Salvation Army placing goods in the open market is to increase the supply relatively to the demand; in order that the larger supply may be sold prices must fall, and it makes no difference whether or no the Salvation Army takes the lead in reducing the price.

If the fall of price enables the whole of the increased supply to be taken off at the lower price, then an increase of employment has been obtained in this trade, though, in this case, it should be remembered that in all probability the lower level of prices means a reduction of wages in the outside labour market.

If the increased supply is not taken off at the lower prices, then the Salvation goods can only be sold on condition that some others remain unsold, employment of Salvationists thus displacing employment of other workers.


<<Back  Index  Next>>

D-Link book Top

TWC mobile books