The Bay of Plenty Times THURSDAY, SEPTEMBER 12th, 1940 AFTER WAR ECONOMIES

Bay of Plenty Times, Volume LXIX, Issue 13138, 12 September 1940, Page 4

The Bay of Plenty Times THURSDAY, SEPTEMBER 12th, 1940 AFTER WAR ECONOMIES

The smooth and effective operations of economic lavs depend upon a balanced position, and the factors that enter into the balance arc wages, costs, prices, borrowing, lending, saving, interest, rent, and others, and above all the human factor which at best is an unknown quantity. How people will react to a given set of economic conditions, is important, and therefore economics are referred to as being a branch of ethics. Economics are never in perfect balance because they are constantly being disturbed by the human factor. Sometimes the disturbance is insignificant, and scarcely noticeable, other times the disturbances 'are violeht, and the reactions equally violent. It may be that some one or more people in authority, believe that if certain alterations or changes are made, it would be good for the people, or it may be in the interests of humanity, so called humane legislation is enacted which disturbs the balance. Sometimes the reactions are not experienced until a considerable lapse of time, and the original disturbing element is overlooked. It is also necessary to bear in mind that economic leavs are no respecters of nations or individuals, of colour or creed, they operate in the same way. No country is immune from economic laws. Just now economics are violently disturbed by the Avar. Some commodity prices are soaring A\ T hile others are depressed, and some industries are thriving. Wages, costs and prices' are high in some countries, Avhile in.others there is no Avage scale, and the very necessaries of life are scarce and unobtainable, a state of affairs Ayhich spells starvation. International trade, on which all nations must depend for progress and prosperity, is held up by the British blockade. Outside of the United Kingdom there is scarcely a country-in Europe .that has any overseas trade, connections, and Avhile under normal conditions this should lead to a cheapening of goods; the Avar is having quite a different effect. Wheat, cotton, rubber, and the industrial metals are high, and they are kept from going higher by arbitrarily fixing prices. The disturbance to economic laws could not be greater, and at the moment nothing can be done toAvards re-establishing a balanced position. We can make sure, however, that sooner or later the Ihavs Avill operate to restore fhe balance. It is Avhen the process of restoration begins, that troubles Avill begin. The transaction from Avar to peace Avill involve the world in many hardships and difficulties, and the reactions of the human factor cannot be predicted. Several facts we know. For example we know that the nations of the Avorld will be poorer because of the Avar. Millions in Europe will seek to be again trading, and would gladly accept a pittance to earn, enough to procure the necessaries of life. High prices for commodities Avill be out of the question. Manufacturers, produceis and wage-earners alike must be prepared for lower prices, and that indefinable thing called the standard of living will be loAvered for each individual. Ncav Zealand vyill be in it with the rest of the world. THOUGHT FOR THE DAY No pleasure is comparable to the standing upon the vantageground of truth. —Francis Bacon. '