EFFECTS OF CONTROL POLICY

Evening Post, Volume CXXVII, Issue 112, 15 May 1939, Page 8

EFFECTS OF CONTROL POLICY

(To the Editor.)

Sir,—The article on Page 10 of Friday's "Post" under the .caption "Price Control," containing a statement on this subject by the Prime Minister, is not very convincing. Mr. Savage says: "If we control prices we are controlling the necessity for increasing wages." The inference is, of course, that the cost of production of goods, materials, and services has not increased as a result of higher wages, and therefore by raising their prices wholesalers and retailers are profiteering. Would Mr. Savage,explain the reason for the 10 per cent, advance in railway fares and freights and the great-ly-increased cost over the estimates of State-built houses, and the rises in price of butter, eggs, bacon, etc., controlled by the Marketing Department? If increased wages do not apply as a factor in increased costs and prices, then not reasonable' to. argue that there is profiteering in State trading departments? The Government controls exchange, imports, exports, distribution of foodstuffs, and transport, upon all of which business and commerce depend for their very existence. It seems we are now to have price control.

Let us now take a look, at the other side. Trade unionism has with the assistance of the Socialist Government raised,wages in every trade, and elevated some of the workers to a wage level above the standard rates in many professions. When one remembers the methods of some of the workers after all they have received at the hands of this Government, one wonders at the Government's milk-and-water statement that it has "suggested that they (the workers) should go easy on making demands." It should be noted that it is merely a suggestion, not a command. The Government does not take the least exception to their making demands in general, but when dealing with the business community there are no "suggestions" or requests; it imposes immediate dictatorial control without any option. Such is democracy as seen through Labour's eyes.

The Government's control policy is beginning to show its fruits in advancing costs and prices, and notwithstanding the Government's experts on economics and statistics, the housewife is the best judge of the purchasing power of money wages. The spending of a pound by the mother of a family produces more real and convincing evidence of values Mian all the reams of statistics provided for our edification on the subject. Control .being the foundation on which the Labour Socialist Government's policy is builV we may expect this Government to extend its policy of control until every revenue-producing activity is under its authority.

It is therefore time to put our thinking caps on and consider where this policy of control is leading us and decide what we are going to do about it. At last election time we were promised that the sales tax would be abolished and the exchange rate lowered. These promises have not been kept, and they cannot be kept today because

the Government requires more taxation to meet its commitments. In spite of higher wages, purchasing power has decreased because of increased costs and prices of Government-controlled foodstuffs, and finally a tax of one shilling in the pound off all wages for social security. By inflicting such a burden of taxation and increased prices upon the people, the Government has reduced the standard of living in spite of higher wages.

Mr. Savage at least admits that p.e is dealing with a difficult situation, which, he says, wwas inevitable to anyone who did any serious thinking." Many people will agree that anyone who gave a-simple thought to the Government's spending policy over the past three and a half years would consider the present "difficult situation" not only inevitable but inescapable.—l am, etc., CONCERNED.