The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1929-05-04
Economic Problems InsolubIe in Capitalism;
New Left Bloc Is Maneuver Against Workers

! portion of capital is at present be-
ing invested in home industry.
Thus situation is developing in
which an increasing weight of bour-
geois policy is turning towards
home industrial reconstruction. For
this purpose, the policy of the Bald
win government is no longer suit
able; and there are signs of the pre-
paration of a new government of a
Left-bloc type, either Liberal-Labor
or even a Labor" government, to
carry through the new phase and
conceal its true character from the
workers.
Passing of Role of Baldwin Govt
The Baldwin Conservative govern
ment came into power in 1924 with
definite role to play. The expert
ment of the Labor" government had
failed to hold in the rising advance
of the workers. A government of the
"strong hand" was needed. The
Baldwin Conservative government,
representing the dominant big fl
nance-capital interests behind the
policy of the gold standard, came
into power as government of the
aggressive and ruthless capitalist
and imperialist offensive at home
and abroad.
During its five years of office it
has abundantly carried through this
role. At home, the preparation,
provoking and crushing of the Cen
eral Strike of 1926 by methods
of organization, and the following
up of the victory by the Trade Union
Act and similar measures to pa
ralyze the working class; abroad,
the war on the Chinese Revolution,
reaction and repression in India and
Egypt, the break with the Soviet
Union and ceaseless preparation of
the economic and military bloc
against the Soviet Union-these
have been the dominant lines of it's
policy.
But the very measure of success
achieved has laid bare the final in
effectiveness of it's policy, and pre-
pared the conditions for a new
stage. For, despite all it's strategic
victories, the Baldwin government
has not been able to solve in any
degree the economic crisis. Unem-
ployment, which stood at 1,287,000
for the registered total in January,
1925, actually reached 1,435,000 in
January, 1929 or an increase of
nearly 1870. Under these conditions,
dissatisfaction has markedly grown
in bourgeois ranks with the relative
inactivity of the Baldwin govern
ment in economic policy and recon-
struction.
Nor has the Conservative govern
ment any important positive eco
nomic policy to offer. It's remedies
in relation to the problem of home
industry are so far mainly confined
to two directions: /. rating" or
the releasing of industry from some
$50, 100000 of local taxation--a flea
bite compared to the problem; 2.
Tariffs, under the thin disguise of
Safeguarding" these, however, can
only be gradually extended owing
to the pledge against protection, and
in any case of only limited value
owing to the relatively minor i'm
portance of the home market for
the British basic industries.
In addition, the financial policy
of the Conservative government
comes into conflict with important
industrialist interests. The Conser-
vative government, centering it's pol
icy on the gold standard and its
maintenance (which reflects especi-
ally the interests of the city and
the rentiers), is strongly suspicious
Of any large-scale schemes Of ex-
penditure or extended credits which
might endanger its already precari-
Gus basis. The recent rising Of the