Unemployment Insurance Bill.

Part of the debate – in the House of Commons at on 29 March 1922.

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Photo of Mr Godfrey Collins Mr Godfrey Collins , Greenock

And he is going to take provision to borrow up to £30,000,000. Is that a fair thing to do in the interests of the State? Has not the time arrived when borrowing for any purpose should be discontinued? Examination of the book by Gustav Cassel, an economist highly spoken of by the Prime Minister, reveals the interesting point that he condemns borrowing for the purpose of finding money to pay out-of-work grants. I know that Members of the Government pay little attention to criticisms from this quarter of the House on the subject. We have painful recollections of their inability to appreciate the economic arguments which we advance from time to time, but on this occasion I bring to the attention of the Minister a point made by Mr. Gustav Cassel that borrowing for the purpose in view is not justifiable, and that the money which this Bill requires should come out of the annual revenue of the State. The result of this borrowing is inflation. It maintains high prices and creates unemployment.