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

CHAPTER VII
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This objection may be met by showing that the goods formerly exported, or an equivalent quantity of other goods, will be demanded for the increased consumption of the labourers in the agricultural colony.

This is a valid answer if the home consumption rises sufficiently to absorb the goods formerly exported to pay for agricultural imports.

But even where this just balance is maintained, allowance must be made for some disturbance of established trades owing to the fact that the new demand created at home will probably be for different classes of articles from those which formed the exports now displaced.

The safest use of assisted labour, where the products are designed for the open market, is in the production of articles for which there is a steadily growing demand within this country.

Even in this case the utmost care should be exercised to prevent the products of assisted labour from so depressing prices as to injure the wages of outside labour engaged in similar productions.
Since the existence of an unemployed class who are unemployed because they are unable, not because they are unwilling, to get work, is proof of an insufficiency of employment, it is apparent that nothing is of real assistance which does not increase the net amount of employment.
Since the amount of employment is determined by, and varies with, the consumption of the community, the only sure method of increasing the amount of employment is by raising the standard of consumption for the community.


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