Summary
Simpson’s named exception, in Chapter X of his 1930 report, to his rule that Jewish labour immigration must stop while Arabs are unemployed: the principle of “derived demand” would justify importing Jewish labour even with Arab unemployment in the country if the imported labour is assured work of a permanent nature through the simultaneous introduction of Jewish capital to provide that work (Palestine: Report on Immigration, Land Settlement and Development, lines 2993-2997).
Details
- The premise Simpson states is that Jewish capital will not be brought into Palestine to employ Arab labour; it comes with the definite object of employing Jewish labour and not otherwise. Preventing the capital entering would not advantage the unemployed Arab, and he is better off if the imported labour is admitted, because expenditure of that capital on wages to Jewish workmen will ultimately cause a demand for the services of a portion of the Arab unemployed (lines 2993-2995).
- The Government must be well assured the employment is permanent, not work for a time after which the labour is thrown onto the labour market, which would only aggravate unemployment (line 2997).
- Simpson holds it justifiable for the Government to demand that the Jewish organisations initiate a security fund, a substantial sum deposited with the Government to guarantee maintenance of over-imported labour in case of unemployment, with negotiations between the Palestine Government and the Jewish Agency to that end (line 2997).
Related pages
Palestine: Report on Immigration, Land Settlement and Development, Labour Immigration Schedule, Economic capacity