What Rationalisation Means to the Workers
“The Times” for May 12th and the six following days published a series of articles on “Rationalisation.” The reason put forward for the articles was the failure of English industries to adapt themselves to post-war conditions by increased combination, cuttng out the middleman and adopting massed production.
For ten years industries in this country have been faced with a depression that threatens to become permanent. The writers of “The Times” articles have no remedy to offer apart from capturing a larger share in the world market by becoming more efficient than foreign competitors. They instance Germany and America in particular, as countries that have forged ahead of England through adopting rationalisation The four to six million unemployed in America and the growing tide of unemployment in Germany is an immediate reply to them, and also a prophecy of what the future promises to the English worker.
“The Times” editorial defines rationalisation as follows :—
“Brought down to its simplest terms, Rationalisation is nothing more or less than the technique of reducing costs. The first stage of this process consists in the elimination of unnecessary and wasteful competition by the formation of cartels to regulate production and to equate supply with demand, and the combination of producing units in “horizontal” amalgamations. Once this has been successfully accomplished, the way is open for a very large number of economies. Among the more obvious of these sources of saving are the suppression of redundant staffs and middlemen, through centralised buying and selling, the reduction of unnecessary specifications through more adequate standardisation, the closing down of obsolete plant, and the concentration of production on the best-equipped units, which can be kept working continuously on a single type of product, thus avoiding a great deal of wasteful duplication. In the sphere of labour costs tho economies made possible by amalgamation are in some respects even more important. The credit resources of big combines render possible large and frequent renewals of fixed capital and consequently enable ihe most modern labour-saving devices to be adopted on a scale which is impracticable for smaller units.”
A careful examination of the above quotation will make the fact evident that the essence of rationalisation is the production and distribution of a given quantity of goods by the employment of less labour than is required at present. A proof of this is given in the fourth article, where the writers point out that in the United States, by mass production, the output per man employed is much higher than in this country.
The claim made on behalf of rationalisation is that it will bring back “prosperity” to this country. The hollowness of the claim is exposed by the following quotation, taken from the first article :—
“Taking the world in general, the increase in productive capacity of the basic industries since 1913 has been far greater than growth in the volume of international trade. The various nations of Europe and Asia, to say nothing of the United States, have striven hard to atrain a far greater degree of economic self-sufficiency. India, China, and Japan, for instance, have vastly increased their production of cotton goods; Germany has gone far towards replacing the plant which she lost owing to the transfer of Alsace and Lorraine to France; Spain and the countries of Central and Eastern Europe; Brazil and Argentina, not to mention India and Australia, have all been building up manufacturing industries of their own behind tariff barriers. The competition in the export of manufactured goods has consequently grown keener.”
The irony of the situation is that the real cause of the depression, which is now international and promises to be permanent, is the fact that international production has far outgrown the world’s demands. The growth of rationalisation tends to make matters worse. The obvious trend of industrial affairs to-day is towards international combinations and the splitting up of the world’s markets among a few immense combines, which would restrict and accelerate production to meet the demands of the market. This will bring in its train a huge body of permanently unemployed that will become more and more menacing to each capitalist nation, and it will tax the ingenuity of future statesmen pretty heavily to find means to keep this huge body quiet and amused.
That any one nation can secure a large part of the international market for any appreciable length of time against competing nations is now practically impossible. The vast strides made in the rapid gathering and diffusion of technical knowledge puts the leading nations on a level basis and prevents one nation from forging ahead of another. In the earlier days of modern industry, England, for various reasons, obtained a flying start and was for a while the manufacturing nation of the world. But the time has passed by when any nation could emulate England. In the heyday of England’s commercial prosperity, British manufacturers supplied foreign countries with the plant, machinery and technical education which are now being used by them to meet their own productive demands and secure a share of other markets.
The present trouble in India, which the Labour Government are handling in true accord with “the imperishable ideals of British statesmanship,” has its root in the fact that Indian industrialists have become conscious of the commercial importance of their steel, cotton and other industries and want a place in the sun-—or, in other words, a fair share of the plums !
At bottom, then, rationalisation is a move to bring the control of industry internationally into the hands of fewer and fewer people and thereby to tighten the bonds of slavery more closely upon the world’s workers. While on the one hand it aims at easing the present anarchy in production by adjusting supply to effective demand, and also tends to make production more efficient by technical and organisational improvement; on the other hand, it aims at making the worker produce more wealth for less wages and increasing the already huge unemployed army. The chasm between the working class and the capitalist class grows ever greater and greater, and can only be bridged by the abolition of the capitalist order of society—as Karl Marx so clearly pointed out many years ago.
There is an illuminating side to the wholesale movement for rationalisation. For decades the standing reproach flung at the Socialist was the charge that he proposed to abolish the small capitalist—that mythical being who is supposed to have raised himself from the ranks by personal effort and was alleged to be a steadily growing: fraction of the community. He has no place, however, in the rationalised scheme of things, he is to be crushed out—the rationalisers make no bones about it ! And he is to be crushed out because he is a hindrance in modern production. Ethical views do not count where economic interests are at stake. It remains now for the working class to point out to the capitalists that they also have become a hindrance to production, as they cannot organise their system to provide adequately for all members of society.
GILMAC