Abstract
AT the recent Aberdeen meeting of the British Association, several interesting papers were contributed to a discussion on “Economic Planning” arranged by Section F (Economic Science and Statistics). In opening the discussion, Prof. D. H. Macgregor, of Oxford, said that the problem to be considered is the case of private enterprise versus the control of private enterprise. While it is admitted that mistakes and waste occur under private enter prise, yet under planning any mistake that is made would be much more serious and might involve very great losses and waste. From an examination of the records in Somerset House of joint stock companies, it has been found that 60 per cent of the companies formed over a certain period were dead in ten years, that less than 30 per cent survived twenty years and only 18 per cent survived for 40 years. This is a high mortality and indicates the risks involved. In money, the wastage amounts to about forty-four million sterling a year or one or two per cent of the national income of England and Wales at the time. A sixth of the year's savings was offset by the dead loss involved. These figures indicate that, under planning, the risk of loss which would result from serious mistakes is very great indeed.
Article PDF
Rights and permissions
About this article
Cite this article
Planning and Economics. Nature 134, 503 (1934). https://doi.org/10.1038/134503a0
Published:
Issue Date:
DOI: https://doi.org/10.1038/134503a0