Page:The Economics of Unemployment.djvu/84

more rapid removal of the congestion, which is its chief result, only prepares the way sooner for another renewal of trade activity along the familiar road towards repletion and depression.

Indeed, it is the most severe criticism of our existing system that it is temporarily advantageous to pay the unemployed to do nothing. On a short view, and ignoring the damaging reactions on economic efficiency and character, it seems usually better to keep the unemployed in idleness rather than to get them to work producing any of the ordinary sorts of goods for the market which is ex hypothesi already over-supplied. The next best thing (or the best, allowing for other circumstances) would be to set them to produce one of two classes of extraordinary goods. The first class consists of useful public works of immediately non-remunerative kinds in the sense that no business firm could at the present time afford to undertake them, and which do not at once facilitate the production of ordinary goods or services. Municipal or State undertakings for some new or improved service performed directly by the public authority, and thus furnishing a minimum of private profit while employing the largest proportion of labour to the

capital required, would best meet the requirements of the situation. The erection of electric superstations, or the building of a Channel Tunnel, are examples of such public works. Though both would react in a future increase of general productivity, that reaction would be postponed, the immediate effect being to increase the proportion of purchasing power in the hands of workers who would use