Responsibility for inflation

Press, 16 February 1984, Page 16

Responsibility for inflation

Sir, — Mr Philip Burdon has evaded answering either question put by your correspondent K. Orr. Could he let us all know the correct hourly rate for the Agricultural Workers’ Market Gardens Award as he disputes Mr Git’s figures as “selected distortion”? A living wage should surely be before any bonus is earned because it is not possible always to earn one. — Yours, etc., M. J. RICH. February 14, 1984.

Sir,—Neither wages nor prices cause inflation. Producing an object or providing a service for sale requires premises, capital, plant, labour, power and matenfels. Pro-

perty values rise at twice the rate of inflation — that’s how Bob Jones gets rich. Rent is reassessed annually as a percentage of a property’s value, which is doubling. The widespread “tarting up” of commercial buildings is increasing the rent component. The “Think Big” projects required massive amounts of capital from the economy at a time when money was tight. Competition for the remaining funds, under capitalism, increased the cost of money and interest rates rose dramatically, raising prices. Under capitalism property and capital (money) are privately-owned and competition for and rises in the returns on them start the pricewage spiral. Under socialism they do not exist. That is why unadulterated socialism has no inflation, even when wages rise. — Yours, etc., SUSAN TAYLOR. February 13, 1984.

Sir,—Mr Burdon, MP. for Fendalton, neglects the central question. Do trade unions have a right in social justice to seek awards that will provide a living wage for their members? That an industry wishes to exploit an abundant female parttime workforce is not justification for providing workers with an award income that would be insufficient to maintain a family on a single income. Only an award provides a guaranteed income which for a 40-hour week should be sufficient to maintain a family above the breadline. A bonus system is outside the award and provides an employer with an opr portunity to share profits with his staff. A bonus is given at the discretion of the employer and on his conditions, thus, it may not be constant, and, like a carrot dangled in front of a donkey, may be moved forward at any time. — Yours, etc., K. ORR. February 14, 1984.