The house of Industry : a new estate of the realm

58 THE HOUSE OF INDUSTRY

part caused by mis-direction of capital outlay) but it has not solved the problem of at once keeping wages at the minimum necessary to profits and dividends and at the same time raising the standard of living to the degree that would ensure much greater effectivedemand. Itmustaccordingly rely upon the possessing classes, and the possessing classes only, for any effective demand beyond the cost of sustenance. For notwithstanding our boasted advances in the standard of living, it is still substantially true that our expenditure on wages is not much more than the cost of sustenance. Remember that against the wage-bill has to be set the cost of unemployment, not only unemployment as disclosed by the weekly returns but part-time employment, uninsured unemployment, sickness and ill-health.

The conclusion, therefore, is that, whilst the industrial system knows how to provide credit for production, its very existence depends upon its refusal or incapacity to provide credit for consumption. The House of Industry, being charged with the maintenance of the whole labour force, would be compelled to provide credit for largely increased consumption.

Our proposed enquiry into effective demand would necessarily work through two different but connected channels. First, there would be the pressing question of providing credit to purchase existing commodities ; secondly, the more tenuous search after new additions to the long range of present products.