I fully understand why I have been urged by so many friends both inside and outside the House to treat unemployment as the central problem and to stimulate a further growth in home consumption, public or private, so as to start getting the rate of unemployment down as fast as possible. I do not believe it would be wise to follow this advice today. As I have said, I did last July and November adopt reflationary measures whose full effect would only be felt this year. I cannot afford to increase demand further today when 5p in every £ we spend at home has been provided by our creditors abroad and inflation is running at its current rate. I do not believe anyone in Britain would thank me for producing an even larger deficit on our balance of payments and injecting a further massive dose of inflation through price and wage increases. Moreover a Rake's Progress of this nature could not last for long. The patience of our creditors would soon be exhausted. We would then face the appalling prospect of going down in a matter of weeks to the levels of public services and personal living standards which we could finance entirely from what we earned. I do not believe that our political or social system could stand that strain.

It is far better that more people should be in work, even if that means accepting lower wages on average, than that those lucky enough to keep their jobs should scoop the pool while millions are living on the dole. That is what the social contract is all about.

We shall increase income tax on the better off so that we can help the hundreds of thousands of families now tangled helplessly in the poverty trap by raising the tax threshold and introducing reduced rates of tax for those at the bottom of the ladder. I warn you, there are going to be howls of anguish from the rich. But before you cheer too loudly let me warn you that a lot of you will pay extra taxes too.

We are all agreed on a massive extension of public ownership...We are all agreed on establishing comprehensive planning control over the 100 or so largest companies in Britain. We are all agreed on the need for a national enterprise board to organise and extend public ownership in the profitable manufacturing industries.

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Hugh Gaitskell was absolutely right when he said yesterday that what gets cheers at this conference does not necessarily get votes at elections. If it did we would have won Devonport [the seat which Michael Foot had just lost]. There are far too many people who...want to luxuriate complacency in moral righteousness in Opposition. But who is going to pay the price for their complacency?
You can take the view that it is better to give up half a loaf if you cannot get the whole loaf, but the point is that it is not we who are giving up the half loaf. In Britain it is the unemployed and old age pensioners, and outside Britain there are millions of people in Asia and Africa who desperately need a Labour Government in this country to help them. If you take the view that it is all right to stay in Opposition so long as your Socialist heart is pure, you will be 'all right, Jack'. You will have your TV set, your motor car and your summer holidays on the Continent and still keep your Socialist soul intact. The people who pay the price for your sense of moral satisfaction are the Africans, millions of them, being slowly forced into racial slavery; the Indians and the Indonesians dying of starvation.
We are not just a debating society. We are not just a Socialist Sunday School. We are a great movement that wants to help real people living on this earth at the present time. We shall never be able to help them unless we get power. We shall never get power unless we close the gap between our active workers and the average voter in the country.

'The owl of Minerva only flies abroad when the shades of night are gathering.' Speaking for Conservatism, Hegel was right. And nothing proves it better than the post-war crop of Tory intellectuals, sprouting like mushrooms in the damp cellars of Abbey House. Not until the stimuli which originally conditioned Conservative reflexes have finally disappeared can the intellectual emerge to provide a rationale for Conservative behaviour. So Conservative theory must always base itself on some form of historical restorationism. The moderate seeks the world of Joseph Chamberlain—or if he is daring, of Disraeli. The really advanced radical looks still further back, to Prince Rupert, or the Middle Ages, particularly if he is a Catholic.