RISING PRICES

Evening Star, Issue 22619, 10 April 1937, Page 22

RISING PRICES

to raa editor. , Sir, —Quite recently figures were quoted by the Minister of Internal Affairs to show that the workers of the Dominion were still much better off as regards wages in relation to the cost of living than under any previous Government. What the Minister should have said was that the workers would eventually be better off under his Government’s administration. As is usual under the economic system prevailing throughout most parts of the world, there are periods when the worker will always enjoy a varying balance or surplus in his favour in the marketing of his labour or services. The Minister’s utterance evidently applies to one of these periods. It has been proved over and over again that increased wages can only give the worker a temporary advantage as regards getting more for his money, until the effect of the granting of the increased wages or shortening of his working hours traverses the full circle of production and marketing, which terms are here used to describe briefly the whole procedure necessary in bringing into being all articles of commerce and services, and their ultimate distribution to the consumer.

It is a great pity that it has become the firm conviction of many people that it is the Government that can regulate all businesses, fix all wages, fix all prices, and do countless other things to the satisfaction of all. Such convictions (which are unfortunately part and parcel of the new educational cult of our_ ’,'igher institutions to-day), after a period become obsessions and bring into being the seeds of many untried isms.

The Government can only regulate up to a given point, beyond which only theorists and quasi-professional Civil servants, holding no mandate and shouldering no direct responsibility, dare tread. With a preponderance of such people, organised so efficiently, it becomes increasingly difficult for a Labour Government to manage the country itself without recourse to their wishes and directions.

This brings us back to the matter

of the present rising prices of all commodities and services. The writer believes that prices have not yet risen to their limit or anything like their limit. The repent legislation—not so much the increases in wages to all workers, but the shortening of the working hours—has largely been responsible for rising cost of commodities. Locally, our own tramway system is a typical example of the irrefutable law that increased costs mean increased charges—no matter whether the ownership be governmental, municipal, or private. Until the Labour leaders realise this costs will keep on rising, and so must prices. A fortnight’s holiday on full pay for everybody is easily possible, it we just add on the total cost in the form of increased prices all round. Anything is procurable in this modern age, only there is always one rigid stipulation of which I would like to remind some intellectuals, and that is, we must pay for it. Everything must be paid for. Even Governments cannot give us anything for nothing, no matter what they may promise.—1 am, etc.. Common Sense. April U.