I thought I would share some thoughts about the case for a programme of publicly funded works that I think would be part of the answer for Double Dip Britain:
There is nothing economically unsound in increasing temporarily and artificially the demand for labour during a period of temporary and artificial contraction. There is a plain need of some averaging machinery to regulate and even out the general course of the labour market, in the same way as the Bank of England, by its base rate, regulates and corrects the flow of business enterprise. When the extent of the depression is foreseen, the extent of the relief should also be determined.
There ought to be in permanent existence certain recognised industries of a useful, but uncompetitive character, like, we will say, reforestation, managed by public departments, and capable of being expanded or contracted according to the needs of the labour market, just as easily as you can pull out the stops or work the pedals of an organ.
I sometimes fear the increasing evil of casual labour. We talk a great deal about the unemployed, but the evil of the underemployed is the tap-root of unemployment. There is a tendency many trades, almost all trades, you have a fringe of casual labour on hand, available as a surplus whenever there is a boom, flung back into the pool whenever there is a slump.
I can almost see Paul Perrin spilling his warm milk as he reads this nonsense about public works. But don’t have a go at me, Mr Perrin, paragraphs 2, 3 and 4 above are the words of that well-known radical, Winston Churchill writing in ‘The People’s Rights’, first published in 1909. It is a powerful plea for ‘a great policy of social reconstruction and reorganisation’. He was at the time, of course, a Liberal. Whatever became of that great radical party …?