Living standards
Sir,—lnternational Monetary Fund recommendations to countries that can barely pay interest on their overseas debt are to reduce living standards through devaluation, currency floats, free markets etc. The I.M.F. congratulates New Zealand (“The Press,” August 3) and forecasts that by March, 1986, imports will be down (through reduced living standards), while exports will be up. GST will spread the reduced living standards more equitably, while decreased personal tax will allow investors more capital. Sir Robert Muldoon forecast that unless debtor nations were encouraged to trade their way out of debt, they would eventually renege, triggering a world economic collapse. In a world literally bursting at the seams with unconsumed and unsellable production, what mental blockage could recommend reducing living standards to pay debt? As Sir Robert indicated, trade could pay debts, consume surplus, create employment and raise world living standards. Is this too
revolutionary a concept for the I.M.F. and its Roger Douglases? — Yours, etc., J. SHARP. August 6, 1985.
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Press, 9 August 1985, Page 16
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162Living standards Press, 9 August 1985, Page 16
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