Britain's P.M. Callaghan (Leader of Labor Party - 1976)

I just read the radio address Ronald Wilson Reagan gave on Nov. 16, 1976 about Britain.  Here is a snippet of the radio address that day and I think it pertains to us pretty well.  You can find the whole address and many other prophetic ones in the book, Reagan’s Path to victory: The shaping of Ronald Reagan’s Vision” Page. 93 – 94.
Prime minister Callaghan of the Labor Party in Britain said in 1976: “The cosy world which we were told would go on forever, where full employment would be guaranteed by a stroke of the chancellor’s pen, cutting taxes, & deficit spending is gone.”  The P.M. is is said now sees socialism as a oversold superstition among the British working class.
If it is true that somehow we take a parallel to Britain then we’d better listen to what the labor P.M. told the British Labor party at it’s recent convention.  He oviously was not out to win a popularity contest and didn’t but even those who jeered the loudest must have wondered if they could equal his courage.
“We must ask ourselves, unflinchingly, “ he said, “ what is the cause of high unemployment?  And he answered his own question, “Quite simply & unequivocally it is caused by paying ourselves MORE than the value of what we produce.  This is an absolute fact of life which no government be it left or right can alter.  We have lived to long on borrowed money & even borrowed ideas and lived in too troubled a world to be able in a matter of months or even a couple of years to enter the promised land.”
He went on to say to his surly audience, “We used to think you could just spend your way out of a recession and increase employment by cutting taxes and boosting government spending, I tell you that option no longer exists and insofar as it did exist it worked by injecting inflation into the economy.”  He added, “ Higher inflation followed by higher unemployment. That is the history of the last twenty years.
Then he hit them with this, “We can oly become competitive by having the right kind of investment at the right kind of level and by significantly improving the productivity of both labor and capital.  Nor will we succeed if we usse confetti money to pay ourselves more than we produce.

This was part of Ronald Reagan’s Radio address on Nov. 16, 1976 from the book “Reagan’s Path to Victory: The shaping of Ronald Reagan’s Vision”  by Kiron K. Skinner, Annelise Anderson and Martin Anderson

It looks to me that we were experiencing the same problems then as we are now, we just have a socialist in the White House and Congress.

Cross posted at http://borderslangculture.blogtownhall.com

Scott Senffner