The problem of distribution

The increase of unemployment, particularly in the textile industries, has once again raised the problem of distribution. Workers are unemployed in the textile industries because their employers cannot sell for a profit all the goods which their employees have produced.

This is not a new phenomenon, but since the end of the second world war it has up to quite recently been fairly easy for any capitalist organisation to dispose of the commodities they own. The S.P.G.B. has on many occasions pointed out that the absence of large-scale unemployment in this country since the second world war was not due to the late Labour Government. It has been largely due to the fact that such a large number of goods were required to make up for the low production of civil goods during the war years, and the need for new plant, equipment, factories, etc. When the war ended nearly everything was in short supply, about the only thing which was plentiful were the promises of the politicians.

Now, however, certain industries have produced a surplus of goods, that is, the supply is greater than the demand. This does not mean that more goods are produced than are required or needed, but that more goods have been produced than can be sold for the time being at a profit. It is only the rearmament programme which has prevented this happening in many other industries.

It must be recognised that under Capitalism the worker always faces the threat of war or large-scale unemployment. In a lifetime one usually gets a taste of both.

It has been shown once again that the capitalist method of production is capable of producing a surplus of certain goods. The problem once more arises as to how to dispose of this surplus. We know that in the past production was cut, the surplus of goods gradually disappeared and when the demand became greater than the supply then production went forward once again.

It is a short statement “that production was cut.” But it would take many pages to describe what it meant to the worker and his family to be unemployed. Surely the working class have learnt something since the 1930’s, then large-scale unemployment and war—and now, both are seen once more in the distance getting more threatening all the time.

Yet there is a way out. The socialist knows the answer. It needs, however, a majority of the population to take the necessary action. The socialist spends time and energy propagating the socialist case because he knows that unless the majority of people understand and take the necessary action, he can, by himself, do nothing to end the present state of affairs.

With the wages system there is bound to be sooner or later a surplus of certain goods, the supply becomes greater than the demand. (Always remember that demand depends on the ability to pay.)

Certain supporters of the capitalist system believe that this can be partly overcome by a national minimum wage. They argue that if the workers had higher wages they would be able to buy the goods which the capitalists were unable to sell. The Beaverbrook press, for example, often puts this or similar ideas. They show a lack of knowledge as to how wages are determined and of the nature of crises which occur under capitalism.

When supply is greater than demand the only thing the capitalist can do is to cut production. We, however, are not concerned with the problems of the capitalist class. Their problem is to sell at a profit, our problem is to obtain the things we need.

The solution for the working class is the abolition of production for profit. Production solely for use is the answer.

With production for use a surplus would only arise when mankind’s needs of a particular article was satisfied. When this situation arose production of the articles in which a surplus had accrued would be cut. The matter would be decided by the whole of society. Unemployment would not occur.

Unemployment is only a problem to the wage worker. A capitalist who does no work does not worry over the fact that he does not receive a wage nor does he consider himself as unemployed.

The division of labour in the capitalist system, whereby a worker is often skilled at only one particular job, would change as Socialism progressed. That is after Socialism had been established and a period allowed for a sufficiency of goods to be produced. Men and women would have a greater opportunity to change and vary the nature of their work. At the present time this is seldom possible without considerable hardship and privation.

Social production with private ownership can never provide for the needs of man. The wages system always prevents the distribution of goods, for demand is restricted by the ability to pay. Social production with common ownership is the only way in which distribution can be arranged to satisfy mankind. It is the establishment of common ownership of the means of production and distribution which the S.P.G.B. is striving to obtain.

D. W. L.