PUBLIC SERVICE CUTS

Evening Post, Volume CXIV, Issue 26, 30 July 1932, Page 14

PUBLIC SERVICE CUTS

"More harm .than good"

. Under the heading "The Crumbling God of Deflation," the "Public" Service Journal. for August remarks in in editorial that the events of the last year, and particularly of the last four months, have thrown into sharp relief clear indications' that the drastic wage reductions in the Public ' Service,: and the lesser ones made ifo the industrial world, have resulted in more harm than good being,done to the business as'well as the waige-earhing sections of: the community. ".-.. \" '•'',

"It is fairly obvious," states'- the journal, "that a heavy reduction in spending power is bound to hit quickly arid severely the people with material and service to sell, and this in : turn affects adversely the revenues of the State itself, for is not the running of State affairs tho biggest business in the Dominion? -■ Certainly, the cost of living has dropped & little,. foodstuffs on account of the unhappy position of, world prices for primary products, rents by reason of lessened demand: for houses together with arbitrary, induction by the- Government of rents and interest. There are, Jiowever, distinct indications that the community is becoming alive to the futility of. wholesale reductions in helping, us .overmuch to emerge from the economic morass that has temporarily at least wellnigh submerged our prosperity."