The economy

Press, 9 January 1986, Page 14

The economy

Sir,—l am intrigued by the argument in your columns over the productive merits of socialism and capitalism. As far as my experience goes, everything on this planet that is produced is produced by people, no tby political abstractions. People seem to be naturally creative, inventive and productive — some of them anyway. People left to their own devices clothe, house and feed themselves. They express themselves culturally and artistically and trade their surplus, all without the need of a political abstraction to decide the direction of their economic lives. Perhaps the apostles of endless control find this uncomfortable. Perhaps they find the distribution of wealth unjust and offensive, a problem to be solved by the imposition of a new social order on everyone. The real solution to this problem of the distribution of wealth is much more basic — remember one thing, you get back what you give out. — Yours, etc., NIGEL DAVIES. January 4, 1986.

Sir, — When a super-Power’s domestic and foreign markets decline to a critical level because of the world glut of commodities, Keynes advances the following placebos to alleviate alternating periods of crisis — Government controls over credit; money circulation and controlled depreciation. Real wages and salaries fall while prices rise. Goods and services deteriorate in quantity and quality, which means a surreptitious fall in living standards. But a safe level of demand is rigidly controlled. Government funds bolster one threat-, ened economic sector at the expense of another, usually town underwriting the countryside. As internal and external borrowing power nears exhaustion a sinister change in thought occurs. Who is responsible? An enemy is found. This necessitates a furious psychological and military build-up, hence the economy is geared to capacity production, producing colossally lethal and financially rewarding weaponry in the multi-billion-dollar brackets. But a Government which “solves” its internal predicament in this manner , has but two alternatives: war or domestic catastrophe. — Yours, etc., W. J. COLLINS. January 4, 1986.