LETTERS TO EDITOR

Evening Post, Volume CXX, Issue 111, 6 November 1935, Page 26

LETTERS TO EDITOR

THE WAGE-CUT FALLACY

(To the Editor.)

! Sir, —The Labour candidates repeat with parrot-like regularity that since June, 1930, the aggregate wage reduction due to the "cuts" is not less than £95,000,000. This figure is calculated on the assumption that, but for the cuts, every man employed in January, 1930, would have remained in work at full wages until June, 1934 —an obvious impossibility owing to the decreased turnover in business. To prove their case these candidates do not hesitate to mislead as to facts. They say: The unemployed in December, 1930, totalled 11,442. In October, 1931, after the first cut, the number was over 51,408. The figures are correct, but, as quoted, are misleading. The candidates omit to say that before the first cut there were already over 42,000 men out of work. Of these 42,000 these candidates assert 31,000 lost their jobs because of the cuts! How on earth could a cut in May, 1931, put men out of work back to December, 1930? It is the same with regard to purchasing power—it is argued that the cut in May, 1931, reduced purchasing power back to January, 1930! An obviously incorrect statement, yet constantly repeated. These facts can be easily ascertained and must be known to those who misrepresent them for political purposes. Such tactics are evidence of a weak case.—We are, etc., N.Z. WELFARE LEAGUE.