MORE PURCHASING POWER OR MORE PRODUCTION.

Evening Star, Issue 19941, 10 August 1928, Page 3

MORE PURCHASING POWER OR MORE PRODUCTION.

TO THE EDITOR.

Sir, —Some weeks ago there was a great stir throughout the dominion over New Zealand' industries, and. in every centre particular attention was drawn to local industries. This was all very good in its way. To many of ns, much of tho information published- then proved very interesting and stimulating We felt that New Zealand was ceitainly no small pot, for were nob SO,OOU workers in. the semi-primary and manufacturing industries producing goods to the value of £84,754,259 per annum? And the same workers, were they not receiving daily the prodigious sum of, £50,000 ? Truly wonderful for a young country' like .New Zealand! But let us state the position in.another way, and we -must recognise the existence of a great gulf in difierenco between tho wages and salaries paid and tho value of tho product. Tho wages and salaries in a year amount t0!£16,865,715, and for this the workers have produced £84,754,259 in wealth. All this is truly marvellous. Yet why do we hear the cry for “ more production”? What is puzzling me is what wo are going to do with. “ more production ” if this crushing disparity between the totals of wages and salaries, and value of products is to remain. Are we to give the surplus away? This question is one that awaits an answer. So far I have not noticed that anyone locally has attempted to deal with this aspect of capitalism. It must be evident to everyone that the purchasing power of the salaried and- wage-earning workers falls far short of being able to obtain what has been produced. It is woefully inadequate! And if the goods produced are not purchased, but remain on the shelves ol the shops and warehouses, what then? I answer that the commercial travellers must return to tho factory offices with less orders in their books. Then the result of this is a period of short-time or complete unemployment for an evergrowing number of workers. _ And it more production be indulged in, then the condition of unemployment and want becomes chronic. I am of the opinion that the cry of the workers and or the small business men should be for more purchasing power. The question arises, now that wo are in ..the transition from Capitalism to Socialism, how is more purchasing power to bo given to the producers? I answer, by. a system of State issue and control ot credits.—l am, etc., John Gilchrist. August 9.