CAUSES OF UNEMPLOYMENT.

New Zealand Herald, Volume LXIX, Issue 21115, 24 February 1932, Page 12

CAUSES OF UNEMPLOYMENT.

Sir,—Your correspondent, "J.W.D." lacks knowledge regarding interest on capital. He says if the money was in circulation instead of in the bank at interest there would be less unemployed. T say, if there were no banks each person would hoard money and things would be worse. The fact of the banks heing able to give interest is proof positive the money is in circulation and thus is earning interest. The cause of unemployment is machinery. Fifty years ago when I was an apprentice, there were a few thousand in England unemployed during the winter, owing to bad weather. Hours of work were then 12 per day. Each year things were getting worse through the introduction of labour-saving machinery, till there were riots to smash up all labour-saving machines and put back the workers in their place. Later the eight-hours' day was introduced, and ended the trouble. Lately machines doing the work of 10. 20, 50 and even 100 men per machine have been introduced. The chief cure is to reduce hours of work the world over and so place, all in employment. One country doing it would be no good. It must be universal to become a cure. F. S. 11. Close.