The Dominion SATURDAY, SEPTEMBER 5, 1931. ECONOMICS AND THE AVERAGE CITIZEN

Dominion, Volume 24, Issue 292, 5 September 1931, Page 6

The Dominion SATURDAY, SEPTEMBER 5, 1931. ECONOMICS AND THE AVERAGE CITIZEN

Among the useful lessons to be derived by the average citizen as a result of his experience of the world depression in general and of his own country’s financial difficulties in particular is the importance of becoming acquainted with and thoroughly understanding the broad principles of economics. A beginning ought certainly to be The paradox of civilisation is that instead of simplifying the problems of life, it tends to make them increasingly diversified and complicated. The primitive savage was content to be more or less the creature of his environment, and allow his existence to be. ordered by Nature. Civilised man, however, attempts to master environment and use it in a variety of ways for his own purposes and everincreasing wants. Out of these activities has grown the modern machinery of social economics,- the influence of which upon hts individual acts and those of his local and national governmental institutions is only at this late day beginning to be recognised by the public at large. It is not so very long ago that the subject of economics was regarded as an abstract and unattractive study, cloistered in university lecture-rooms and discussed by exclusive groups of highly intelligent but rather depressing people. The very reverse is the truth. The science of economics, and the conclusions reached by.economic thinkers, are based entirely upon human conduct and experience. Also, since economic science is based upon human conduct and experience, and therefore upon human desires and opinions which are so constantly changing, and which in no two countries of the world are alike, there can as yet be no absolute finality about its conclusions. That sharp differences of opinion exist, as to whether this, that or another economic system is sound, is therefore not unnatural. That these variations are likely to be permanent may be questioned. Nature herself' has imposed upon all forms of life certain inexorable laws, to flout which is to court disaster, and it is not inconceivable that ultimately all economic systems will resolve themselves from the crucible of experience into some semblance of similarity. Even Russia has been forced to admit that the skilled worker is worth more than the unskilled. One of the reasons why modern democracies have largely failed to rise to the difficulties of the immense tasks now before them is that ignorant demagogues and cranks have been allowed to usurp the place of level-headed practical men in government. Had the electorates had a grasp of even the elementary principles of economic living it is very doubtful whether such individuals would ever have been permitted to enter the Parliaments of their countries, for the fallaciousness of their doctrines and the falsity of promises would have been exposed at once. As in other scientific fields of research arid demonstration there is in economics a great deal of quackery, some of it sinister and deliberate, some of it merely the froth and bubble of unbalanced and irresponsible minds. There is no more profitable field for quackery , than public ignorance. This is peculiarly and dangerously true of economics, for false doctrine in politics may do inconceivable injury, to the welfare of the State. It is false doctrine, as preached by those who promise the Socialist millennium that has. done much to add to the difficulties of Britain which the best brains of the nation are now working hard to overcome. False doctrine nearly bankrupted. Australia, and unless determinedly resisted in this country may seriously retard our economic recovery. With the visible and encouraging growth of public interest in these very pressing questions there is given to economists of recognised standing in New Zealand an opportunity of popularising their subject, and bringing the public into more enlightened contacts with its broad principles and their application to personal and political conduct. In all the recent crises economists have had to be called in to advise Governments how to undo the mischief done by neglect of these principles. The economist can now supplement these valuable services by making common cause with the public against false doctrine, and inducing habits of clear and critical thinking.