The economy

Press, Volume CX, Issue 32459, 20 November 1970, Page 12

The economy

Sir,—lt is pleasing to learn that the Government has removed more goods from import control. What a pity our leaders lack the political courage to phase out these controls altogether, as recommended by our own Monetary and Economic Council, as well as the World Bank team of economists. This positive action would reduce prices, force manufacturers to become more efficient, stop further waste of scarce resources on uneconomic production, and encourage the birth of specialist export-ori-entated industry. If other countries can do this, then surely we can. All we need is the right leadership.— Yours, etc., RICHARD ELLIS. November 17, 1970.

Sir, —J. M. McMahon asks whom we should call upon to save our savings from the present system. I suggest ourselves. The present inflation is chiefly due to the total worth (A) of the gross national product being surpas-' sed by the total worth (B) of money issued for the exchange of goods and services. (A) is not catching up, so (B) has to be reduced. Instead of overdoing it with underemployment, the sensible alternative is an incomes policy, trying to reconcile (B) with (A); and this is presumably what the Government is trying to initiate in the coming conferences between employers and Mr Skinner. This complex task at this time calls for sacrifices. Mr Skinner’s accepting sacrifices is unimaginable and unions in the mass appear to enjoy cutting down total (A). We must be enabled to call upon ourselves to adjust to an incomes policy which adjusts to fluctuations of wealth.— Yours, etc., A. B. CEDARIAN. November 19, 1970.

Sir, —It seems ironic that the economy is prosperous when the revenues from liquor and gambling is highest, yet these two sources do the most harm. It is possible to prove a point by carrying it to an. extreme. Imagine what it would be like if everybody drank and gambled to the extreme that many so-called hardy citizens go. Or again, supposing that everybody forswore drink and gambling, the financial system would run dry and come to a stop. It would seem that our economic system has reached such a high state of efficiency that the more we try to sabotage it the greater our prosperity, and blunderland becomes a wonderland.—Yours, etc., W. B. BRAY. Leeston, November 18, 1970.