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International Socialism, Spring 1965

 

Dave Peers

When the Boom Breaks

 

From International Socialism (1st series), No.20, Spring 1965, p.31.
Thanks to Ted Crawford & the late Will Fancy.
Transcribed & marked up by Einde O’Callaghan for ETOL.

 

Unemployment and the American Economy
ed. Arthur Ross
John Wiley, 38s.

This book is a compilation of papers given at the first conference of the Ford Foundation’s Research Programme on Unemployment. The majority of contributors present convincing evidence that the major cause of unemployment in the US is not to be found in structural imbalance, i.e. the ‘black spots’ theory, but in a deficiency of demand throughout the economy. From this diagnosis of creeping overproduction come the Kennedy tax cuts which have maintained a rate of growth of over 4 per cent for a record four years. The tax cut was the main policy proposal of the conference so it is unfortunate to record that it has not done the trick. Despite the longest period of continuous expansion in American history the unemployment rate has not fallen below 5 per cent. Automation and a steadily rising supply of school leavers require the economy to create 3 million additional jobs each year to prevent unemployment increasing beyond its present level. What happens when the boom breaks is anyone’s guess – the Research Programme is very reluctant to look into the future – but they will have to come up with something better next year to be kept on the payroll.

 
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