50 Years Ago: Major Douglas and Unemployment (1986)

The 50 Years Ago column from the November 1986 issue of the Socialist Standard

Nothing shows up so clearly the failure of Major Douglas and his followers to understand the nature of capitalism as their inability to explain the ups and downs of production and trade. A case in point is their forecast of constantly increasing unemployment.

In its issue of January 25th. 1934. the Douglas journal, New English Weekly, wrote:

As technology develops, there will be a growing mass of unemployed — 20 per cent. 30 per cent. 40 per cent or more — who are deprived of all demand-power, except such as we allow them by way of the dole.

Now let us contrast that prophecy of unemployment increasing for 20 per cent to 30 per cent, 40 per cent and more, with the actual happenings, as shown in the Ministry of Labour returns as to the percentages of insured workers unemployed. 

January, 1933 23 per cent.

January, 1934 18.6 per cent.

January, 1935 17.7 per cent.

January, 1936 16.3 per cent.

June, 1936 13.1 percent.

September. 1936 12.4 per cent.

In due course capitalism will experience another crash and then the Douglasites. silent as to their past failure, will rush into print, repeating their fallacious theories and prophecies.

[From an article "Douglasites Floored by Facts'", Socialist Standard, November 1936.]