Evening star., 1949-08-29

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it made up by sales to other coun-
tries.
It is evident to everybody that
a real invasion of the American
market by British manufactured
goods would bring quick and
devastating reprisals. in the form
of higher tariffs.
When you press Marshall Plan
officials to explain just exactly
what goods could be sold in the
United States in the quantities
they suggest, they reply that this
is something that must be studied.
Presumably the group Of Amer
lean businessmen who are sched-
uled to come here in the near fu-
ture will attempt to answer this
one.
Courses of Action.
Consequently the thing that the
United Kingdom must do is:
/. Increase sales of colonial
goods such as rubber, tin and
cocoa to the United States.
2. Export as much as possible
from the United Kingdom to the
United States and earn as many
dollars as possible from shipping,
but
8. Concentrate on exports to
other countries.
Here the United Kingdom runs
right into the problem of high
export prices.
At the present time prices of
British goods are sky-high, laugh
ably so in some cases.
The big problem Is to get even
greater production and to. cut
prices down to reasonable level
at the same time.
All the experts agree that prices
.nust be slashed.
Socialists suggest the fol-
lowing methods:
Greater incentive must be pro-
vided for everybody to produce
more.
Loafing and absenteeism can be
cut by changing the present tax
scheme which penalties workers
when their earnings reach a cer-
tain level.
No Unemployment Exists.
Abuses can never be stopped
properly, these people believe. as
long as Britain has full employ
ment. The present figure of 243.-
900 for the entire country means
that many unemployable people
are actually employed. There is
no unemployment.
This works out at IL per cent
of the insured population; it is
generally reckoned that 5 per cent
of unemployment Is happy
medium between distress and a
complete lack of labor discipline.
Obviously the Labor Govern
ment will not create unemploy-
ment. 1t will fight against it.
But it will come in any case when
uneconomic industrial units are
put out of business by increased
competition.
It is hard to say how much the
welfare state has increased costs
by excessive expenditure and in
creased taxation.
It seems to be universally agreed
among non-Socialists that the
government payroll can stand a
lot of trimming-at least by S
per cent and probably by 10
per cent.
It also seems to be generally
accepted that the health scheme,
under which people get medical
treatment and medicine absolute
ly free, should be revised so that
individuals pay a nominal sum
for treatment.
This would penalize the wave OF
hypochondria that has been ball
ing up the work of doctors and
hospitals.
A revamping of the tax system
to encourage initiative and a
Tightening up of all government
operations would seem to be the
"naturals" in a tight situation like
this.
Housing Program Attacked.
It has been suggested by many
foreigners that the governments
housing program should be cur
tailed. People who are really ac-
quainted with the scope of
Britain's housing problem say
that, on the contrary, the program
must go ahead full steam.
The cutting of British export
costs will involve a heavy does
of discipline for employers as well
as employees.
British industry is still domin-
ated by rings, cartels and combi-
nations which rig prices, check
production and suppress COM
petitors.
Their profits are high enough
to permit plenty Of trimming.
The British Treasury could also
ease its situation by taxing stock
exchange spectators who pay
nothing on their profits.
But the big rap Is going to have
to be taken by the working class
They are going to have to take
it one way or another. The only
question is whether or not the
present government will have the
Spunk and the intelligence to
present the problem properly and
to take the necessary steps.