(p. 12)The contrasting experiences of the Great Depression and the Second World War convinced the Labor Party that governments could and must intervene to ensure the achievement of full employment.
The introduction to the white paper summed this up: Despite the need for more houses, food, equipment and every other type of product, before the war not all those available for work were able to find employment or to feel a sense of security in their future.
By contrast, during the war no financial or other obstacles have been allowed to prevent the need for extra production being satisfied to the limit of our resources.The basic ideas behind the white paper were those set out by John Maynard Keynes in his 1936 work The General Theory of Employment, Interest and Money.
Keynes made an argument for the causes of periodic unemployment and for a policy response, stating that recessions and depressions occurred because the economy was destabilised by fluctuations in private demand, and particularly in levels of investment.
The increase in income generated by public works would then obstensibly be fed into demand for other goods and services, yielding a stimulus to the private sector.