George Brown in Cloud Cuckoo Land

Mr. George Brown, Minister of Economic Affairs, is convinced that there are such things as “fair” and prices, and has got the employers’ and employees’ organisations to agree to attempt to regulate prices and incomes. He knows “his people” so well to be sure that when the instructions get to the individual worker and capitalist they will make them work.

Briefly, the Prices and Incomes Policy is to regulate the growth of all incomes at the rate of three and a half per cent per year, whilst keeping prices stable. George Brown hopes that public opinion will influence capitalists to keep prices down when they could put them up, and that it will restrain workers’ wage demands.

This policy will fail for exactly the same reason as “free” enterprise regulated by the price system. Brown seems to forget that capitalism is a competitive class society and that the economic forces acting upon capitalists and workers are stronger than all the moral suasions and judgements. In fact already there are many claims by sections of the working class aiming to get on to a “platform of equality” with other workers, e.g. doctors, teachers, farmers, before the growth rate commences. Further, there are many workers, some recognised by George Brown as being lowly paid, who will have to press for increases considerably greater than three and a half per cent.

The big laugh is that if by some fluke George Brown were to succeed and peg wage growth rates at three and a half per cent, we may all be like Alice—running faster and faster to stay in the same place. There is not much point in having three and a half per cent increase in wages if you have to pay three and a half per cent more for the things that you require to get the health and strength to increase your productivity by at least three and a half per cent.

But then who are we to laugh at George? We can’t solve his problem either. In fact, within capitalism the problem is not soluble. If we widen our terms of reference however, the whole aspect takes a rosy, instead of blue, hue. The world has enough resources to satisfy the needs of man—we have the population capable of exploiting those resources, of producing the goods where man needs them—only capitalism, with its production for profit, stands in the way.

Rachman, Bloom, Ferranti are a natural part of capitalism. George Brown cannot change a society in which the hall mark, and professed route to efficiency, is competition, into one wherein co-operation prevails, without changing the economic basis of society; and we can rest assured that he cannot do that.

K.K.