THE EFFECT OF THE WAR ON THE INDUSTRY.
Page 14
If you've noticed an error in this article please click here to report it so we can fix it.
IT IS DOUBTFUL whether those who argue that the motor industry has done very well out of the war realize the very essential difference between the position of that industry and the position of many others that are now contributing a big share of excess profits to the national exchequer. In the case of the motor industry quite a large percentage of the present production will remain serviceable when the war is over. In other words, the war may have had the effect of accelerating increase in output without -necessarily having the effect of bringing more business to the manufacturer in the long run than he would have got in any case. He may be regarded as building and selling at the moment what he would otherwise have built and sold in two or three years time.
Admittedly, he is Manufacturing for the war, but be is manufacturing what will be used in time of peace, and a considerable preportion of his profits cannot, therefore, be ranked as war profits in the ordinary sense. Evidently, it would' be better for the manufacturer to build, later on, machines the pro fits from which would remain his own, than to build now machines the bulk of the profits of which pass to the Government. The point is that in this particular industry he cannot do both. The more he turns out now, the less will be the demand for his products when peace returns. He has, then, a very special claim to consideration, such-as will enable him to hold and extend his mar.: kets against competition when the war is over. This cannot be done without considerable expenditure, and if such expenditure is rendered impossible by taxation, the results to the whole industry must be disastrous.