COSTS AND PRICES.

Auckland Star, Volume LXVII, Issue 115, 16 May 1936, Page 23

COSTS AND PRICES.

Referring to the wail that is ascending to high heaven about the legislation now being enacted having the effect of increasing costs and prices and cancelling the benefit of increased wages, thus maintaining the "vicious circle," I thought it had been made clear that wages will be advanced as production increases and that with the absorption of the unemployed into industry production will be augmented to such an extent that the tendency will be for prices not to advance, especially if it becomes .illegal to destroy commodities in order to create an artificial scarcity and enhance prices. Anyhow, does it necessarily follow that prices will advance proportionately with the increase in wages? Will not steps rather be taken to prevent the making of undue profits? Then, if it be proved that an industry cannot carry on with reduced profits, even under a "protective" tariff, perhaps the Government will abolish the tariff and subsidise the industry instead (which would cost the public less), or take it over, if it be an essential industry, and run it for service only, eliminating profits. CONSUMER.