We’re out of shape

Press, 31 August 1977, Page 27

We’re out of shape

Many New- Zealanders arei Brill not prepared to accept 1 that further cuts in standards of living are necessary. But the sooner we accept this, the sooner we might rise to the challenge, and the sooner we shall be on the way to building a stronger nation. The sooner we understand' that our economic problems! are not just cyclical, not just a matter of a lean ' period to be followed by aj fat one. not just the ebb and How of the business cycle,! the better oft we are. The facts are that at the; moment the world is in an ' upward phase of the bu« - ness cycle even if the!’ "boom” is much quieter than the boom of 1973. But it has not done us much good. Ou. exports rose about 35 ' pe cent last year, but our balance of payments deficit 1 on current account alone is 1 still some S3OOM: our terms of f rade have deteriorated to the extent that a given quantity of exports will buy ■ less than two-thirds the J volume of imports which it would buy in 1973. it r here are indications that;< export prices mav have 11 peaked. in that context Mr Mui- t doon’s remark that “ . ~ s anv relaxation of internal!! r -’n’”: : n rhe near future 1 ’

I would oe irresponsible,” becomes understancable. Mr Roger Douglas, Labour’s spokesman on consumer affairs, expressed it very well the other day when he said that we should be prepared to make two fundamental changes — first iin our attitudes as indiviiduals and as a nation, and '<econd in the nature of our economy. j “New Zealanders still live lin a myth,” said Mr (Douglas. “We have swanned 'along for years, clutching to , the belief that we are somehow the chosen people. [What we do, and the way 'we do it, is somehow the best. “In fact we are blighted by the ’she’ll be right’ attitude. We readily accept the shoddy and the second rate. We are suspicious of each other, fearful that someone else will get ahead. Our future demands that we should be the most aggressive salesmen in the world ... in fact we are halfhearted. ' “Our aggression is too often Turned inwards in a dog-eat-dog mentality. Above all, we have no idea where we are ; going, either as individuals or as a nation. We are in no ! shape to face the biggest ehal|lenge of our short history,” 'M- Douglas said.

He attributed out attitudes partly to physical isolation, and the stubborness of a people still only a step from their pioneer heritage. But it is also the mark of the failure he says, of successive governments and community ' leaders to create any real: understanding about New I Zealand’s economic perfor-1 mance. ! “We simply do not understand that increased wages. rent, government services and profit demands, combined with static productivity must only result in increased prices. “We al! blame the plight of this country on each other and not on ourselves. “We are also saddled with an economic structure that simply does not work for us. T have heard it said that New Zealanders are underpaid. overtaxed and underworked. I believe that this is true. We are clinging to structures that provide rea’ disincentives for productive and development. We have a ‘disincentive economy.’ “If we are to break out of this, we will have to make positive use of all the economic weapons that a government and a society has at its control." Mr Douglas said. And that is enough said fo the moment.