The Stratford Evening Post With which is Incorporated “THE EGMONT SETTLER” (Established 1890.) SATURDAY, APRIL 22, 1933 Spending Essential

Stratford Evening Post, Volume II, Issue 226, 22 April 1933, Page 4

The Stratford Evening Post With which is Incorporated “THE EGMONT SETTLER” (Established 1890.) SATURDAY, APRIL 22, 1933 Spending Essential

"WHEN the question is raised whether a particular piece of W expenditure will make it necessary to increase taxation, it is not enough merely to compare the prospective money yield of the proposed investment with the interest payable on the money borrowed to finance it," says Professor Pigou, of King's Colledge, Cambridge, in a let ler to The Times. "It is necessary also to bring into account the savings that are made in unemployment benefit. Thus, if a new shin costs £1,000,000. and because of the new employment directly and indirectly created in building it. the net cost: of unemployment relief is diminished by, say, £2,000,000, the prospective return on that ship should from the point of view of the community as a whole, be balanced against the interest, not en a million, but on £BOO,OOO. In different circumstances the savings on unemployment benefit due to new enterprise will be different, if. by indirect psvchological reactions, confidence is stimulated and a cumulative movement toward expansion, started, they may be enormous. These are matters of speculation. B"t there is enough of cerraintv for one definite conclusion. If an enterprise is likely to fall short by only a little of being directly remunerative to the investor, it is sure to be remunerative in a substantial degree to the community as a whole. When in doubt, therefore, do not suspend judgment; above all, do not contract. When in doubt, expand." _.. .