There is the guilty knowledge that a fall in the rate of inflation must be accompanied by a rise in the rate of unemployment and that a sharp fall from a high rate of inflation must have severe consequences, which are inescapable. This is because an economy geared to inflation at 25 per cent per annum has to undergo a terrific readjustment to change to expectation of only 15 per cent or 10 per cent per annum inflation. Since inflation cannot go on up for ever, this prospect is inescapable.
British politician (1912–1998)
John Enoch Powell (16 June 1912 – 8 February 1998) was a British politician, classical scholar, author, linguist, soldier, philologist, and poet. He served as a Conservative Member of Parliament (1950–1974), then Ulster Unionist Party (UUP) MP (1974–1987), and was Minister of Health (1960–1963).
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The dilemma is this: they know, and we know, that if the rate of inflation is to be reduced, at whatever rate my right hon. and learned Friend later this afternoon announces is the Government's intention, then the result of that, for the time being, must be a slowing down of the rate of economic growth and a slowing down, to put it mildly, in the fall in unemployment. That is the known and certain consequence of reducing the rate of inflation—not of the way in which it is done but of the fact that it happens.
One of the most dangerous words is 'extremist'. A person who commits acts of violence is not an 'extremist'; he is a criminal. If he commits those acts of violence with the object of detaching part of the territory of the United Kingdom and attaching it to a foreign country, he is an enemy under arms. There is the world of difference between a citizen who commits a crime, in the belief, however mistaken, that he is thereby helping to preserve the integrity of his country and his right to remain a subject of his sovereign, and a person, be he citizen or alien, who commits a crime with the intention of destroying that integrity and rendering impossible that allegiance. The former breaches the peace; the latter is executing an act of war. The use of the word 'extremist' of either or both conveys a dangerous untruth: it implies that both hold acceptable opinions and seek permissible ends, only that they carry them to 'extremes'. Not so: the one is a lawbreaker; the other is an enemy. The same purpose, that of rendering friend and foe indistinguishable, is achieved by references to the 'impartiality' of the British troops and to their function as 'keeping the peace'. The British forces are in Northern Ireland because an avowed enemy is using force of arms to break down lawful authority in the province and thereby seize control. The army cannot be 'impartial' towards an enemy, nor between the aggressor and the aggressed: they are not glorified policemen, restraining two sets of citizens who might otherwise do one another harm, and duty bound to show no 'partiality' towards one lawbreaker rather than another. They are engaged in defeating an armed attack upon the state. Once again, the terminology is designed to obliterate the vital difference between friend and enemy, loyal and disloyal. Then there are the 'no-go' areas which have existed for the past eighteen months. It would be incredible, if it had not actually happened, that for a year and a half there should be areas in the United Kingdom where the Queen's writ does not run and where the citizen is protected, if protected at all, by persons and powers unknown to the law. If these areas were described as what they are—namely, pockets of territory occupied by the enemy, as surely as if they had been captured and held by parachute troops—then perhaps it would be realised how preposterous is the situation. In fact the policy of refraining from the re-establishment of civil government in these areas is as wise as it would be to leave enemy posts undisturbed behind one's lines.
What I have learned and what I fervently believe is that neither high and stable levels of employment nor prosperity nor anything that a nation can desire is to be obtained by debauching its currency; that the mere manufacture of additional money, the mere process of inflation, though it may create temporary euphoria, is no basis upon which, for any class in the community, security or prosperity can be built. It is in that belief and in the belief that it is demonstrated by history that I speak as I do.
Yet we slink about like whipped curs ... our self-abasement principally takes the form of subservience to the United States ... we are under no necessity to participate in the American nightmare of a Soviet monster barely held at bay in all quarters of the globe by an inconceivable nuclear armament and by political intervention everywhere from Poland to Cambodia. It is the Americans who need us in order to act out their crazy scenario... We simply do not need to go chasing up and down after the vagaries of the next ignoramus to become President of the United States.
He says to the Sovereign: "I no longer am leader of the majority party in the House of Commons; but I am carrying on as your Prime Minister." Now I don't think anyone can say that—at least without inflicting damage on the constitution... [it is] tantamount to treating the monarch herself with disrespect and denying the very principle on which our parliamentary democracy is founded.
Make no mistake, the real power resides not where present authority is exercised but where it is expected that authority will in future be exercised. The magnetic attraction of power is exercised by the prospect long before the reality is achieved; and the trek towards the rising sun, which is already in progress in 1972, would swell to an exodus before long. What do you imagine is the reason why Roy Jenkins is prepared to resign the front bench and divide his party in the endeavour to give a Conservative Prime Minister a majority in the House of Commons? The motive is not ignoble or discreditable—I am not asserting that—but it is a motive which it behoves people in Britain well to understand. It is the ambition to exercise his talents on the stage of Europe and to participate in taking decisions not for Britain here at home but for Europe in Brussels, Paris, Luxembourg or wherever else the imperial pavilions may be pitched. He does not, I assure you, forsee his future triumphs and achievements where his predecessors have seen them in the past – at the despatch box in the House of Commons or in the Cabinet room at Downing St. These are not good enough: the vision splendid beckons elsewhere.
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The people who founded the Working Men's College understood all this very well. The working men for whom this institution was created had a thirst for education in a way we can scarcely imagine today. It was not to pass examinations and qualify for better wages nor to raise themselves into a higher social class—though these are respectable ambitions and no doubt many of those early students felt them—but to get at knowledge for its own sake because without it their existence would be less worth to them, that the working classes demanded education and got it. This was part of the good life, and they were not to be denied it. To read and write, to borrow books and debate, to study the sciences and learn a foreign tongue—all these were so many steps not of economic advancement but of human dignity.
[A]s long as the rate is fixed the speculator is on a one-way option. As soon as the rate is determined by the market, speculation is equal and opposite at the market rate. One has only to imagine what would be the position—and it is not an entirely out-of-the-way analogy—if there were to be fixed rates on the Stock Exchange. Everyone would know when they were false and did not correspond with the realities. The consequence would be that from time to time we should have to unpeg the fixed rates, with catastrophic changes of value, instead of the market rates being determined by the judgments of all who participate in the market. The same happens with a floating rate for a currency.