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THE  PROBLEM  OF  THE  UNEMPLOYED

§4.  A  Priori  Assumptions  of  Economists.
This  view  has  always  been  based  upon  an  à  priori  assumption ­
  that  whatever  is  produced  can  be  sold  and  must  be
sold  because  it  was  produced  for  no  other  motive,  the
validity  of  which  assumption  I  shall  discuss  later  on.
Here  it  is  enough  to  say  that  the  theory  that  overproduction ­
  in  some  trades  implies  under-production  in
others,  and  that  the  malady  is  only  the  necessary  misdirection ­
  of  productive  energy  arising  from  imperfect
acquaintance  with  markets,  is  inconsistent  with  the  facts
at  a  time  of  depressed  trade.  Where  are  then  to  be
found  the  under-producing  trades,  those  which  are  insufficiently ­
  fed  with  capital  and  labour,  and  where,  in  consequence ­
  of  the  growing  inability  to  satisfy  demand,  prices
are  rising  ?  There  are  no  such  trades.  The  fall  of  prices,
the  depression  of  trade,  the  slack  employment  are  general
not  special  in  application.  The  glut  of  loanable  capital
is  sufficient  proof.  If  there  were  trades  which  were
under-producing  this  free  capital  would  flow  into  them.
A  continued  glut  of  loanable  capital  seeking  investment
is  only  consistent  with  the  admission  that  all  avenues  of
sound  investment  are  already  occupied.
§  5.  True  Meaning  of  “  Over-production
But  when  the  state  is  described  as  one  of  overproduction, ­
  a  certain  misconception  often  arises.  If  by
over-production  is  meant  a  continued  process  of  glutting
the  markets  with  goods  which  cannot  find  purchasers
and  are  accumulated  in  ever-increasing  quantities,  such
an  operation  is  not  possible.  A  comparatively  small
quantity  of  goods  which  are  “  over-produced”  in  the