Enoch Powell Quotes

The economic losses are those which are common to all monopolistic and restrictive practices. Whenever relatively more is paid for one set of services, and therefore less for all the rest, than would be paid in the absence of restrictive practices, the result is that the pattern of production is not as nearly as "right" as it would otherwise be: we waste part of our resources—human as well as material—by not putting them to the uses which yield the best return. In the modern state this is corrected not, as in the past, by unemployment and the forcing down of money wages, but by inflation and the devaluation of money: if one group succeeds in raising the price of its services by restrictive methods, then everyone else will also get around to being paid more for theirs, until a pattern which corresponds with the balance of supply and demand is again restored. The resultant inflation not only has the familiar inconvenient consequences for a country with a fixed parity of exchange. It also creates injustice for those persons and classes whose expectations are defined in fixed money terms.

Contrary to popular belief there is no reason whatever to suppose that the remuneration of labour in general has been raised by the combination of labour through the trade unions to a higher level than it would have stood at otherwise. The rising standard of living of the employed population is due to many causes; but restrictive practices are not among them. No doubt in individual occupations combination has from time to time succeeded in raising real wages above what they would have been in its absence; but any such gain, which is invariably at the expense of workers in other employments and of the general public, is always temporary and usually brief. After more or less inconvenience and, in recent times, by dint of more or less inflation, the pattern of real wages reverts to one which corresponds with the balance of supply and demand for labour in the various employments in different parts of the country.

It will be seen that all these difficulties attach to those aspects of trade unionism which involve restriction and coercion... I would hope and believe that it will not be impossible to disentangle the coercive and restrictive activities of trade unionism from all the rest of its long tradition, so closely entwined with our economic and social history. I can only say this: once the basic question is posed...as to the justification of private force in the pursuit of ends whether private or public, real or imaginary, that question has to be answered openly and fearlessly... If the conclusion is that no such justification can be shown to exist, either generally or in our own society and times, then sooner or late, however long and wearisome the process, however many inquiries and Royal Commissions we must live through, the law of this land will have to be brought into accord with what can be defended by its people as right and just.

I am not of course suggesting that combination cannot force up the price of labour in a particular employment above the market level. What I am saying is that this advantage is demonstrably often more or less short-lived: indeed, in the inflationary conditions which we have experienced in the last twenty years, any such gain has been neutralised and obliterated exceptionally quickly. But wherever and as long as there is an advantage, it is always at the expense not only of the community at large but of other workers: of the community at large, because its pattern of production and consumption is thereby less satisfactory than it otherwise would be—the standard effect of all monopoly and restriction; of other workers, because the higher cost of labour in that employment reduces demand for it and results in workers either being unemployed or being employed less remuneratively than they otherwise would be.

Anyone who believes that the rise in the standard of living of the working classes in this country in the last twenty years or the last hundred and twenty years is due to the existence and actions of the trade unions, will believe anything. It is the kind of absurdity which people only entertain when they are desperately determined to do so, for fear of the consequences of disbelief. The rise in that standard is due to the greater productivity of labour, proceeding in turn from a whole host of causes—greater scientific and technical knowledge, more capital, better organisation, and so on. We all know this, and we all know that it has nothing whatever to do with restraint of trade or restriction of competition.

The creative forces in a nation lie in the people themselves—in their determination, their effort, their hopefulness, their thrift, their readiness to venture and to change. Only in proportion as they show and apply those qualities can the economy advance. The truly creative policies are the policies which enable the nation to put forth the effort and to take the decisions upon which, alone, the rate of its advance depends.

The Labour Party, we all know, have fallen head over heels in love with science. The very mention of automation or computers brings a gleam into their eyes and a glow to their cheeks. They promise to favour automative re-equipment and computerisation. The irony is that these same people are dedicated to destroying the largest and most wonderful computer the world has ever known. This is the computer into which are fed the whole time millions of facts not only from all over this country but from all round the globe. The answers tumble out of it in an unending stream: it tells us all the time what it is most advantageous to import or export; it tells us what the relative benefits are of the imported article and the "home-produced substitute"; it tell us what can be produced "economically and competitively" and in what quantity and where. This wonderful silent mechanism—dare I say, this "automative" mechanism?—of the market the Labour Party want to smash, in order to install in its place—what? The pathetic figure of a President of the Board of Trade going through the old Trade Returns with his officials and trying to reproduce—no, to improve upon—the result of millions of acts of judgment made continuously throughout the economy by those who, in total, have available far more data than the Board of Trade ever dreamt of.

It is no accident that the Labour Party of 1964 should share this craving for autarchy, for economic self-sufficiency, with the pre-war Fascist régimes and the present-day Communist states. They are all at heart totalitarian.

Wages, profits, prices are determined, always have been determined, and always will be determined until we go Communist, by the market—by supply and demand working through the market. While we tie ourselves into knots trying to invent non-market criteria for our commissions to use, the market is there, noiselessly, efficiently, irresistibly doing the job for us all the time. Irresistibly—yes, and there's the rub. For there is one thing outside the market in a modern economy, and that is money itself. Governments can and do satisfy the demand for money, raise and lower the supply of money. In short, governments have the power to control money, which is so largely their own creation. If governments allow monetary demand to increase faster than productivity, the market will not stop the process, because it cannot stop it. The market will simply go on determining wages, profits and prices in ever higher monetary terms—until something busts.

The duty of every management is to conduct its business, including the price policy of the business, in the way which in the opinion of the management is likely to maximise the return on the capital invested in the business. A management which does not do this betrays more than the shareholders in the business; it betrays the employees and the nation as a whole. The national interest lies in all the nation's resources being put to the most advantageous use possible. Anywhere outside a Communist state—and perhaps the time is coming when even that qualification will be superfluous—this is done by seeking to secure the largest possible return on capital. To maximise profits is for management not an optional exercise or a work of supererogation; it is management's basic duty. If private enterprise in a capitalist society is not trying to do that, there is no point in private enterprise—nor, for that matter, in a capitalist society.

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.

"All men", said Aristotle, "by nature desire to know." The pursuit of truth, the effort to comprehend, arrange, interpret some aspect or other of the universe we perceive, is an activity of humanity which justifies, rewards and motivates itself. The study of something for its own sake, for the sake of knowing, understanding, grasping it and for nothing else, is an essential characteristic of education, lower or higher, though more obviously of higher education. The content of education must therefore be that which men would wish to know for its own sake.

We exist to say to the nation that its future, economically and socially, will best be what the people themselves make it; that the possibilities which lie open to their ingenuity, effort and initiative are wider far than any government could conceive, still less bring to pass; and that the duty of government is to help, but never constrain, the free development of the nation's resources and talents. We offer neither servitude, nor the safety, ease and irresponsibility of servitude. We offer freedom, and the risks, the dangers, the uncertainties, the untidinesses, but also the responsibilities and the opportunities which are inseparable from it.

Society is much more than a collection of individuals acting together, even through the complex and subtle mechanisms of the free economy, for material advantage. It has an existence of its own; it thinks and feels; it looks inwards, as a community to its own members; it looks outwards as a nation, into a world populated by other societies, like or unlike itself. The Tory Party, with its deep sense of history, has always concerned itself especially with these two aspects of society, and I believe that the British people would instinctively and rightly reject a philosophy which offered them just an economic machine, however efficient and successful.

The Tory principle is the opposite: to trust the people. This has been expressed in practical terms in our actions in the last twelve years. We dismantled and abolished the economic controls, licensing, rationing and powers of direction inherited from the war and post-war Socialism; we restored a market for savings and abandoned the rigging of artificial rates of interest, which had been a fruitful cause of inflation; we imposed on the nationalised industries, apart from those restored to the free economy, the discipline of making comparable profits with what similar investments elsewhere would produce, and we undertook a major surgical operation on the railways to enable them also to earn profits; in our trade policy we sought the widest and most competitive markets for our exports... in taxation policy we have aimed at leaving to the individual earner and the individual firm the free disposal of as large a proportion as possible of their income or profits; finally there is our determined and increasingly successful effort to keep for our money that stability of value which enables people to take their own decisions about spending and saving in terms which have a meaning.