RECONSTRUCTION

Evening Post, Volume CXVI, Issue 90, 13 October 1933, Page 5

RECONSTRUCTION

THE AMERICAN PLAN MR. SAVAGE'S COMMENT

Brief reference to President Eoosevelt's National Eeconstruction scheme was made in the House of Eepresentatives last night ty the Leader of the Opposition (Mr. M. J. Savage). Mr. Savage said the reason for the ehortening of hours was to give the working people the benefit of tho development of machinery and scientific processes. Up till now the benefit had gone to the owners of the machines, but as they could not consume the whole of the production of the machine, unemployment had followed. To the extent that the American nation had reduced hours of work to coincide with the increased productive capacity of the machine, it was on the right track. How far it intended to follow that road it was impossible to say. In addition the American proposals made definite provision for increased wages. No doubt the Ministerialists would argue that New Zealand's standard of living was higher than, the American, but that was not the question in dispute The point at issue was whether or not tho relationship between production and purchasing power was keeping richt. In his opinion it was not. The gap between production and purchasing power was widening all the time, and represented largely tho cause of tho mdTmustrbe S'realisea in New Zealand that the price of labour as well as the price of goods must be raised if obligations were to te met. In that respect the Government had no programme, and merely criticised Labour's proposals without indicating wherein they were at fault. But increasing wages and increasing prices alone were not sufficient; the gap between productive power and purchasing power had to be closed, since that was the only solution of the difficulty. .