The Economic Issue

Dominion, Volume 28, Issue 113, 6 February 1935, Page 11

The Economic Issue

Sir, —The New Zealand Welfare League suggests that my reasoning is indicative of Confused thought. I do not resent the inference but I maintain that the real truth of the matter is the fact that your correspondents subscribe to the orthodox view of political economy, whereas I belong to that company which does not.

The standards and values of the past are gradually finding their way into the melting pot, and of late the economic issue has come in for a good deal of prominence. It is all very well for the upholders of the old- order to dump the remedies suggested as “quack nostrums,” but do these people ever consider the future of the human rade, let alone the destinies of their own sons and daughters? It is my humble opinion that the prospects for modern youth are as barren as the sands of the Sahara.

I contend, with all the emphasis that I can muster, that it is both criminal and illogical for anybody to reproach individuals or organisations who serve altruistic ideals. I think there is far more real sincerity in the ranks of the reactionaries than among those who boast that it is better to serve the devil you know than the one you don’t. It is said that the way to win a boy’s heart is to do it per medium of his stomach. Does not this apply to grown-ups? For after all, to what is all the discord in the world to-day due? I should say poverty. The reason for poverty is staring us in the face, but the sad part of it is that the economic system is less at fault than the apathetic interest of the public- towards social reform. I contend in conclusion that’much if not ali. of this unpleasantness will be averted if compromise or agreement is reached in the following issues! — (1) That money saving for capital expansion under present conditions is injurious because it aggravates the insufficiency of the currency. (2) That sine'e work is the only means of obtaining a living, and since, exports being the price we pay for imports, we cannot increase exports without increasing imports, too, a clear case is made for the fallacy of international trade, which in following the creed that we live by our exports sets itself the impossible task of providing employment by producing vast quantities of goods and graciously accepting some imports for them (but not too many) for fear of depriving people at home of work. (3) That this latter-day magic called high finance is nothing more than a conspiracy or a clumsy weapon used by international financiers to prevent continuous prosperity the world over. (4) That since governments have the power in theory but not in practice to mint money, the supply of which regulates price levels (and consequently the wagelevel), this is a matter that the individual, as forming a component part of the state, has no say in whatever. I Pahiatua, February 4.