The only answer to Socialism was to build up by every means a property-owning democracy. Socialism promised to build up a great pauper State by its schemes for State relief, nationalization and doles, while the Conservative Party promised to build up a great property-owning, thrifty, and industrious State.
Prime Minister of the United Kingdom from 1957 to 1963
Maurice Harold Macmillan, 1st Earl of Stockton OM PC (10 February 1894 – 29 December 1986) was a British Conservative politician and publisher who served six years as Prime Minister (1957–1963). As Prime Minister, he worked to decolonize the British Empire in Africa and repair United Kingdom–United States relations after the Suez Crisis. He also led the Conservative Party to accept the post-war consensus of Keynesian economics and the welfare state. However, he was forced to resign by the Profumo affair and France's veto of British entry into the European Economic Community.
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When I ventured to criticise, the other day, this system I was, I am afraid, misunderstood. As a Conservative, I am naturally in favour of returning into private ownership and private management all those means of production and distribution which are now controlled by state capitalism. I am sure they will be more efficient. What I ventured to question was the using of these huge sums as if they were income. I know now, I have learnt now from the letters that I have received, that I am quite out of date. Modern economists have decided there is no difference between capital and income. I am not so sure. In my younger days, I and perhaps others of your Lordships had friends, good friends, very good fellows indeed too, who failed to make this distinction. For a few years everything went on very well, and then at last the crash came, and they were forced to retire out to some dingy lodging-house in Boulogne, or if the estate were larger and the trustees more generous, to a decent accommodation at Baden-Baden.
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It is no doubt true that you cannot "draw an indictment against a whole people". Yet the story of Prussian policy through many generations is dark indeed. "Prussia's whole policy", declared Metternich, "consisted in the enlargement of her territory and the extension of her influence; to attain it, she was willing to adopt any manner of means and pass over the law of nations and the universal principles of morality." What Frederick the Great began was followed by his successors at the end of the century, and continued by Bismarck. It inspired the Kaiser and his advisers in 1914. It was soon to be surpassed in cynicism and crime by Hitler.
So I approach the date on which my story of the Fifty Years Revolution begins. The old world ended, with its strange mixture of beauty and ugliness, happiness and sorrow, good and evil—so much to be proud of; so much, looking back, of which perhaps to be ashamed. Yet the most rabid radical or the most caustic critic of the Britain that had fought and won a twenty-year battle for freedom a century before, that for a hundred years had helped to keep the peace of the world, and spread civilisation to its distant corners, cannot but feel that if, in this sequence of rapid change, much has been gained, something, too, has been lost.
Indeed, let us be frank about it. Most of our people have never had it so good. Go around the country, go to the industrial towns, go to the farms, and you will see a state of prosperity such as we have never had in my life time—nor indeed ever in the history of this country. What is beginning to worry some of us is, is it too good to be true?—or perhaps I should say, is it too good to last? ... Our constant concern to-day is, can prices be steadied while at the same time we maintain full employment in an expanding economy? Can we control inflation? This is the problem of our time.
Although I am still in favour of a National Government in these difficult times, and shall probably be found in the great majority of cases in the Government Lobby, there are some issues that have arisen, or are likely to arise, upon which I am unable to give the Government the support which it has, perhaps, the right to expect from those receiving the Government Whip. It occurs to me, therefore, that it would perhaps be more satisfactory if I was no longer regarded as being among the supporters of the present Administration.
It is always a matter of regret from the personal point of view when divergences arise between colleagues, but it is the team that matters and not the individual, and I am quite happy about the strength and the power of the team, and so I thought the best thing to do was to settle up these little local difficulties, and then turn to the wider vision of the Commonwealth.
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In later years I was to find economists and newspaper editors arguing against the principle of full employment, to which after the Second War all political parties attached so much importance. While I recognise the dangers of "over-employment", I have little sympathy with those who, writing from pleasant suburban retreats or comfortable editorial chairs, dilate upon the disciplinary values of pre-war conditions. It was my fate to live with the problems of heavy unemployment for fifteen years. They were not substantially eased by any conscious effort either in the industrial or economic field. Rearmament under Hitler's pressure and ultimately under war brought their own grim solution.
The events of 1931 had struck a formidable blow to the hopes of a return to the pre-1914 "normalcy". Of course we had all known that there must be great changes resulting from the war: changes in economic and financial methods; still more, changes in concepts of social justice. But up to 1931 there was no reason to suppose that these would not, or could not, follow the same evolutionary pattern which had resulted from the increased creation and distribution of wealth throughout the nineteenth century. We had only to remove the hindrances to trade artificially created by the war and its aftermath. The rest would follow. Now, after 1931, many of us felt that the disease was more deep-rooted. It had become evident that the structure of capitalist society in its old form had broken down, not only in Britain but all over Europe and even in the United States. The whole system, therefore, had to be reassessed. Perhaps it could not survive at all; it certainly could not survive without radical change... [I]n the thirties, something like a revolutionary situation had developed, not only at home but overseas.
Perhaps the most extraordinary thing about a modern battlefield is the desolation and emptiness of it all... One cannot emphasise this point too much. Nothing is to be seen of war or soldiers—only the split and shattered trees and the burst of an occasional shell reveal anything of the truth. One can look for miles and see no human being. But in those miles of country lurk (like moles or rats, it seems) thousands, even hundreds of thousands of men, planning against each other perpetually some new device of death. Never showing themselves, they launch at each other bullet, bomb, aerial torpedo, and shell. And somewhere too (on the German side we know of their existence opposite us) are the little cylinders of gas, waiting only for the moment to spit forth their nauseous and destroying fumes. And yet the landscape shows nothing of all this—nothing but a few shattered trees and 3 or 4 lines of earth and sandbags; these and the ruins of towns and villages are the only signs of war anywhere visible. The glamour of red coats—the martial tunes of flag and drum—aide-de-camps scurrying hither and thither on splendid chargers—lances glittering and swords flashing—how different the old wars must have been.