COST OF LIVING.

Evening Star, Issue 22890, 23 February 1938, Page 2

COST OF LIVING.

TO THE EDITOR.

, Sir, —“ Disappointed ” suggested that I should check up some of the_ prices given by Mr Hargest, M.P., with regard to the rise in the cost of living. This I did on a recent visit to Invercargill, Mr Hargest flour at 4s 6d on February 15. I discovered that 251 b of flour could be bought for 4s 3d. Pearl barley he quoted at 4d per lb; my quote was 3Jd. Macaroni he quoted at 8d a lb; the prices given me were s£d and 6id. Water biscuits he quoted at Is lb; my price lid. And these prices were supplied to me by an Invercargill grocer on the date mentioned. Some of the items given by Mr Hargest are still the same, but, as I have already stated, there is a large amount of competition in the grocerv trade. No doubt Mr Hargest did his best when he went on his shopping expedition, but I do think that it is a much wiser plan to leave the buying of the family groceries to the housewife —she knows the right I certainly should like to see the sales tax removed, and all other taxes that are imposed upon the people’s necessities. “ Disappointed ” states that he paid lid for a pound of steak. I was hoping that when that steak was cooked it was not disappointing. In order to' buv that steak he had to have the lid. The prices of different commodities depend upon different seasons of the year. One kind of commodity may be sold at its market value—another has to make a long journey to market and go through a different process before reaching the market. This may have happened to the steak, and after having consumed that steak his wealth had disappeared, hut that which he had exchanged for it was still in circulation and therefore created a use-value. Certainly there is an increased purchasing power to-day. The amount paid out in tensions alone has increased during Labour’s term of office from £2,370,000 to £4,127,109. This means that there is a greater spending power and more money is in circulation and changing hands for different commodities, such as steaks, etc. Then, take the restoration of the wage cuts, the increased amount paid in sustenance, and those people who were employed for one or two days and who are now in full-time employment. Their earning capacity has been doubled. It must then follow that there is an increased purchasing power, and, incidently, an increased consumption. , In order to make improvements in the pensions and pay to the aged, the infirm, the blind, and unfortunate, a further £1,000,000 was required, and surely “ Disappointed ’’ will not grudge these people some happiness and object to pay his quota in the form of taxation. Though your correspondent objects to an increase in taxation, a man, his wife, and two children fare better in New Zealand than a man earning the same income and having the same family in Great Britain. A man with a wife and two children, earning £4OO in New Zealand, after paying the tax

will have £396 12s; in Great Britain, ; earning the same salary, he would nave - £396 ss. So your correspondent must see that that which is taken off m taxation goes towards social services, which are higher in New Zealand than 4 in any part of the world. ' “ Disappointed ” rather have the 7s to ; gamble with, or ,pav it m the form of , taxation to the aged and infirm? But T do think the time is coming when the Labour Government will have to ? raise the necessary money some other way. 'ln a recent speech made by the , Right Hon. Mr Savage he stated that he intended to pay some attention to the private hanks. They make a largf ■» amount of profit, and X wonder if ns intends to tax these profits, or nation* alise the banks. 1 “ Disappointed ” must remember that the Labour Government has been in f; office only two and a-half years. It 4 has achieved many things, and has progressed when other Governments have failed. I am sure “ Disappointed and I will try to help the Government t to tackle that particular problem (th« . ij; monev question), and such small commodities as a flitch of bacon or a pound of steak should create no difference 4 between us. • .. ,'l Again, I would Respectively suggest ; that “ Disappoint*! ” should note the statement made by the Postmaster- | General under the heading of Baro- ;| meter of Prosperity ’ in your Monday « issue, which refers to increased deposit* 4 in the Post Office Savings Bank. Thesa | figures, in my opinion, speak volumes, and are indicative of the prosperous * condition of the masses of our people. .* and certainly a feather in the can of j our present “Government regarding it* economic policy.—l am, etc., Ag,icE HkiUMßir. February 22.