"ALL-IN" INFLATION?
Remarks by Mr. C. P. Agar, a member of the Dairy Industry Council, illustrate clearly the danger of the policy the Government is pursuing in piling up costs with one hand and holding them down with the other. Mr. Agar said that the country was suffering from a certain amount of inflation, and the dairy industry was expected to keep on producing and carry higher costs without participating in that so-called inflation. "If it is a good thing to have inflation, let us all be in it," he added. "If it is bad, well, let us have equality of treatment for all sections of the community." Doubtless Mr. Agar recognises the evils of inflation and would do his utmost to avoid them, but he sees that if the higher cost basis is brought upon the country, important sections of industry cannot be expected to continue producing for returns based upon lower costs. Either it must be "all-in" with sacrifices to keep costs down, or it will be "all-in" on the inflation movement.- And when this happens it is extremely difficult to put in a stopping-block. Every new lot of increases adds to costs and leads to demands for further increases. The rate of inflation becomes quicker. The only corrective is "equality of treatment for all sections of the community," not increases for some sections and stabilisation for others.
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Bibliographic details
Evening Post, Volume CXXX, Issue 108, 2 November 1940, Page 8
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230"ALL-IN" INFLATION? Evening Post, Volume CXXX, Issue 108, 2 November 1940, Page 8
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