"THE FORGOTTEN CLASS"

Auckland Star, Volume LXXIII, Issue 106, 7 May 1942, Page 6

"THE FORGOTTEN CLASS"

"One Who Knows" is caustic about the thriftless old age pensioner. Has he given a thought to what would happen should everyone save? Assume every person is able and willing to save 5/ a week. At the end of the year some £20,000,000 is withdrawn from circulation and the shopkeepers find their takings down by this amount. They shorten hands and their factory orders are reduced by, say, £15.000,000. The factories put off hands and these out-of-works have their ideas of saving knocked on the head. The loss of wages still further reduces spending, and in a very short time we are in the midst of a severe slump, which can only be relieved when spending starts again. With a financial system which makes it impossible for the country as a whole to get out of debt, how can everyone save? If everyone can and does save, those who live on investments will have to consume their capital, for who will borrow if he has money of his own? The "thrifty section of the community" should be thankful there are fools who spend, otherwise they would have fewer opportunities for accumulating money.

PLAIN BILL.