National Planning and the World Economy
It has long been known that planning by individual nations must lead to international chaos, the degree of the chaos being in direct proportion to the number, the completeness and the efficiency of the separate national plans. The manner in which the socialist State, beginning often with high aspirations of international harmony, will contribute to the breakdown of the world economy has frequently been described.1 National planning reduces international trade. It stifles the free movement of capital and labour and thus undermines the international specialisation of effort. International economic relations become highly unstable because of the recurrence of national planning crises and because trading is a matter of high politics and thereby suffers from every twist and turn in political relations. As each planned economy is driven towards autarchy the problem of the ‘have’ and the ‘have not’ nations emerges and may well make for war. With the sordid experience behind us of the inter-war years these are axioms. This chapter is a postscript showing how Great Britain under planning is, in international economic affairs, being driven along a path which will damage her own economic prospects and contribute to the impoverishment of the whole world.
KeywordsWorld Economy Home Market Domestic Inflation Export Quota International Economic Relation
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