AUSTERITY ANTI-CLIMAX
The fact is that the measures which have so far been taken are those which are dictated by circumstances. Given that the dollar loan had disappeared, these cuts were the bare minimum of action to meet the new situation. The fact that the announcements so far made contain no solid assurance that further crises will not occur argues a complete breakdown of positive planning. Of course it takes time to draw up measures to increase exports—but not as much time as the Government have taken. Two years of inflation, of allowing the American loan to flow into the bottomless pit of personal consumption, of increasing rather than decreasing demands upon the national output, of placating the trade unions instead of impressing upon them the fact that hard and unremitting work is more necessary now than ever before—two years is more than enough to be spent on these things. The least instructed members of the public stand ready for a new effort. And instead of the encourage- ment which comes from the simultaneous announcement of real sacrifices and positive measures to make these sacrifices temporary, there is the discouragement of cuts unaccompanied by any evidence whatever of a settled and coherent plan of productive activity. And yet the fact is that the prospect is by no means hopeless. Many countries are more anxious than before to buy in the British market. On the other hand, great as is the British need for imported raw materials, the prices which we can afford to pay are necessarily lower than they were before we were so sharply taught that we must live within our means. The net result of this adjustment of pressures may be a turning of the terms of trade in our favour. But we must deliver the goods. Exports must go up, which means that home production must go up, which means, above all, that coal production must go up.
