The economy

Press, 25 November 1982, Page 20

The economy

Sir,—lt would appear that unless we, as a nation, demand justice from those who rule us then we are surely headed for bankruptcy. The economic miracle shines no light at all; instead, it could be assumed that we are about to be transported back in time to the downcast days of the Great Depression of the 19305. Think big seems to many only more unemployment and a larger deficit. Surely the time has come when our politicians must grant the ordinary New Zealanders the right to take the initiative to show the way, as they, our Parliamentarians, put their own prestige ahead of the grim realities that threaten the economy of this society today. Time passes quickly, and it is a pity that our politicians have squandered the opportunities that society has put before them, so that in the future, fewer and fewer people will be willing to trust those who would rule us. Anarchy already threatens to rear its ugly head in this society, so unless we are prepared to progress, little hope can be offered in this society. — Yours, etc., PETER W. KENNEDY. November 22; 1982.

Sir,—l also applaud Leon Morel for his statement that “free trade is • a prescription for national ruin”. Economists who argue against import controls maintain that protection reduces international trade. New Zealand’s case illustrates one fallacy in this argument. If New Zealand had avoided getting into debt by maintaining import controls, the hundreds of millions of dollars we now have to pay each year as interest would have been available' to buy overseas goods. Last yfear, the Labour candidate for my electorate said the Labour Party had not discussed restoration of import controls in recent years. It is to be hoped that trade unionists like Mr Morel will put pressure on Labour to return to its earlier policies and that voters will get rid of politicians, like Mr Quigley, who are openly anti-protection and who want to continue dancing to the free-trade tunes of our Pied Piper economists. Yours, etc.,

MARK D. SADLER. November 22, 1982.

Sir, — The $2.1 billion balance of payments deficit may not herald' imminent bankruptcy; but it does sound the alarm. The Muldoon bland assurances are not convincing when we remember his prophetic track record. Too often in the last seven years that tunnel light has failed to show up. The imports of costly capital equipment for the Think Big projects, themselves of doubtful value, are probably more to blame than the error in judgment shown by car manufacturers. Many other causes may be. named, among them the import of luxury goods for tax avoiders to buy, the amount of overseas travel being on the rise and other inflation fuelling behaviour: The bleak outlook this time differs from the Depression of the 30s when prices fell sharply and continued to fall. This time they keep on rising. The lid may come off next year, when normal industry- imports will rise. Action must be taken now. It is already rather late. —

Yours; etc., A. M. COATES. November 23, 1982.