Liberalism and the Social Problem

by Winston Churchill

I said that disturbances of our industrial system are often started from outside this country by causes utterly beyond our control. When there is an epidemic of cholera, or typhoid, or diphtheria, a healthy person runs less risk than one whose constitution is prepared to receive the microbes of disease, and even if himself struck down, he stands a far greater chance of making a speedy recovery. The social and industrial conditions in Great Britain at this present time cannot be described as healthy. I discern in the present industrial system of our country three vicious conditions which make us peculiarly susceptible to any outside disturbance of international trade. First, the lack of any central organisation of industry, or any general and concerted control either of ordinary Government work, or of any extraordinary relief works. It would be possible for the Board of Trade to foretell with a certain amount of accuracy the degree of unemployment likely to be reached in any winter. It ought to be possible for some authority in some Government office—which I do not care—to view the whole situation in advance, and within certain limits to exert a powerful influence over the general distribution of Government contracts.

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-up the general course of the labour market, in the same way as the Bank of England, by its bank 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, afforestation, 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. In this way, you would not eliminate unemployment, you certainly would not prevent the creation of unemployables; but you would considerably limit the scale of unemployment, you would reduce the oscillation of the industrial system, you would increase its stability, and by every step that you took in that direction you would free thousands of your fellow-countrymen from undeserved agony and ruin, and a far greater number from the haunting dread of ruin. That is the first point—a gap, a hiatus in our social organisation—to which I direct your attention to-night, and upon which the intelligence of this country ought to be concentrated.

The second vicious condition is positive and not negative. I mean the gross, and, I sometimes fear, increasing evil of casual labour. We talk a great deal about the unemployed, but the evil of the under-employed is the tap-root of unemployment. There is a tendency in many trades, almost in all trades, to 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. Employers and foremen in many trades are drawn consciously or unconsciously to distribute their work among a larger number of men than they regularly require, because this obviously increases their bargaining power with them, and supplies a convenient reserve for periods of brisk business activity.

And what I desire to impress upon you, and through you upon this country, is that the casual unskilled labourer who is habitually under-employed, who is lucky to get three, or at the outside four, days' work in the week, who may often be out of a job for three or four weeks at a time, who in bad times goes under altogether, and who in good times has no hope of security and no incentive to thrift, whose whole life and the lives of his wife and children are embarked in a sort of blind, desperate, fatalistic gamble with circumstances beyond his comprehension or control, that this poor man, this terrible and pathetic figure, is not as a class the result of accident or chance, is not casual because he wishes to be casual, is not casual as the consequence of some temporary disturbance soon put right. No; the casual labourer is here because he is wanted here. He is here in answer to a perfectly well-defined demand. He is here as the result of economic causes which have been too long unregulated. He is not the natural product, he is an article manufactured, called into being, to suit the requirements, in the Prime Minister's telling phrase, of all industries at particular times and of particular industries at all times.

I suppose no Department has more means of learning about these things than the Board of Trade, which is in friendly touch at every stage all over the country both with capital and labour. I publish that fact deliberately. I invite you to consider it, I want it to soak in. It appears to me that measures to check the growth and diminish the quantity of casual labour must be an essential part of any thorough or scientific attempt to deal with unemployment, and I would not proclaim this evil to you without having reason to believe that practicable means exist by which it can be greatly diminished.

If the first vicious condition which I have mentioned to you is lack of industrial organisation, if the second is the evil of casual labour, there is a third not less important. I mean the present conditions of boy labour. The whole underside of the labour market is deranged by the competition of boys or young persons who do men's work for boys' wages, and are turned off so soon as they demand men's wages for themselves. That is the evil so far as it affects the men; but how does it affect the boys, the youth of our country, the heirs of all our exertion, the inheritors of that long treasure of history and romance, of science and knowledge—aye, of national glory, for which so many valiant generations have fought and toiled—the youth of Britain, how are we treating them in the twentieth century of the Christian era? Are they not being exploited? Are they not being demoralised? Are they not being thrown away?

Whereas the youth of the wealthier class is all kept under strict discipline until eighteen or nineteen, the mass of the nation runs wild after fourteen years of age. No doubt at first employment is easy to obtain. There is a wide and varied field; there are a hundred odd jobs for a lad; but almost every form of employment now open to young persons affords them no opening, is of no use to them whatever when they are grown up, and in a great number of cases the life which they lead is demoralising and harmful. And what is the consequence? The consequence may be measured by this grim fact, that out of the unemployed applying for help under the Unemployed Workmen Act, no less than twenty-eight per cent. are between twenty and thirty years of age, that is to say, men in the first flush of their strength and manhood already hopelessly adrift on the dark and tumultuous ocean of life. Upon this subject, I say to you deliberately that no boy or girl ought to be treated merely as cheap labour, that up to eighteen years of age every boy and girl in this country should, as in the old days of apprenticeship, be learning a trade as well as earning a living.

All attempts to deal with these and similar evils involve the expenditure of money. It is no use abusing capitalists and rich people. They are neither worse nor better than any one else. They function quite naturally under the conditions in which they find themselves. When the conditions are vicious, the consequence will be evil; when the conditions are reformed, the evil will be abated. Nor do I think the wealthy people of Great Britain would be ungenerous or unwilling to respond to the plain need of this nation for a more complete or elaborate social organisation. They would have a natural objection to having public money wasted or spent on keeping in artificial ease an ever-growing class of wastrels and ne'er-do-weels. No doubt there would also be a selfish element who would sullenly resist anything which touched their pocket. But I believe that if large schemes, properly prepared and scientifically conceived for dealing with the evils I have mentioned were presented, and if it could be shown that our national life would be placed upon a far more stable and secure foundation, I believe that there would be thousands of rich people who would cheerfully make the necessary sacrifices. At any rate, we shall see.

The year that lies before us must be a year of important finance. No doubt that finance will be a subject of fierce and protracted discussion; but I shall certainly not exclude from my mind, in weighing the chances of social reform, that strong element of patriotism which is to be found among the more fortunate of our fellow-countrymen, and which has honourably distinguished them from the rich people of other countries I could name.

I have been dealing with three, and only three, of the evil causes which principally affect labour conditions in Great Britain at the present time. Do not forget, however, as the Prime Minister has reminded us, how intimate is the co-relation of all social reforms, how vital it is to national health and security that we should maintain an adequate and independent population upon the land, and how unsatisfactory, in Scotland, at any rate, are the present conditions for small holdings. Do not forget, either, how fatal to the social, moral, and political progress of British democracy is the curse of intemperance. There is not a man or woman who lifts a voice and exerts an influence in support either of land or of temperance reform, who will not be doing something not only to alleviate the sufferings of the poor, but to stimulate the healthy advance of British prosperity.