COST OF LIVING

Evening Star, Issue 22895, 1 March 1938, Page 12

COST OF LIVING

TO. THE EDITOR. Sir,—T have read with interest all your correspondents on the cost of living, and think Mrs Herbert is far from the mark in trying to put across thinking practical people such nonsense. Mrs Herbert talks of increased purchasing power since the labour Government got into office. Certainly, pensioners have had an extra few shillings, sustenance pay and invalid pensions have been increased, and a few have had benefit from pension through desertion. 1 claim that these should be double the amount to give people a proper standard of living and enable them, to live on the things best for their health and welfare. How many of these poor creatures are living in miserable rooms or houses not fit for' humans, trying to make ends meet? The cost of living is higher than it has been for years, clothes, food, and rents, and more taxation ns your correspondent, “ Disappointed.” says. ’’ To content ourselves and pay taxes in order that others mav live in a world teeming with while people are in need and want is beyond reason. Taxing one to give to another will never solve the problem. Wc must realise that when

wages rise all costs must rise. With the manufacturer paying more wages, more for material, more for modern machinery; more rates for his budding, and more taxation, it is only to be expected that prices *will rise. Thun, what is the use of our rise in wages? What use is more purchasing power when it is all absorbed in higher prices and taxation? With all the higher wages Mrs Herbert talks about, shops are still full of goods that we need, offering sale prices, yet we cannot afford to buy. How many are there who are still below the level and would give their families, and perhaps themselves, fruit and better things, renew their homes and build better houses for themselves, but are not able because of wages absorbed in high prices? “ Satisfied ” seems content to believe that because a few have pensions increased there is more money about, and “ Satisfied ” does not seem to know that what a consumer pays over the counter does not actually mean more circulation. 1 know now of a woman, sick and weary of trying to make ends meet, who lias gone into hospital, receiving a pension of 23s 6d a week and paying 21s for rent. How can one live? Her husband, receiving sustenance and not allowed to earn one penny more than the Government says he should, has also had a breakdown in health.—l am, etc., Progress.

February 23

TO THE EDITOR. Sir,—During the course of this written discussion there have been occasions when your correspondent, “ Disappointed,” was, in agreement with me, or else he agreed upon a certain uoint: but, judging by the tone of his last letter, he seemed to be entirely opposed to Labour ideals. Your correspondent asked me certain questions m regard to the economic policy of the Labour Government and its clfect upon the people of the Dominion, and ho must realise that what 1 have already stated is correct. The Hon. Mr Savage, speaking at Fcatherston on February 26, stated/ that more than half of the money raised by taxation is handed back to the people. The policy earned, out by the New Zealand Government is closely watched bv other countries, and as a result of the guaranteed price paid to the farmer to protect him, the control of foodstuffs has received favourable comment from overseas papers, including that most conservative paper, the London ‘Times.’ As a result of the competent manner in which the Government is handling this matter, 30.000 British housewives recently presented a petition to the Prime Minister protesting against the rise in the cost of living in England, and requested him to fix tho maximum price of bread, incidentally pointing out what the New Zealand Government is doing in this direction. Where the Government controls foodstuffs, tho prices paid to the producer will be sufficient to cover the production costs, together with payments for personal service, or work equal, as far as ean be ascertained, to that made for similar services or work in fields of production, and the Government naturally expects private enterprise to follow suit. To-day a big Public Works policy is being carried on—bigger than any that has operated before. This policy consists of housing, road improvements. electrification, railway construction, etc., and it is wonderful to see thousands employed on these different works at a standard rate of pay, many of whom were on that uneconomic work familiarly known as the No. 5 scheme. The Government is planning economic life upon ordered lines for the public’s good, replacing the bad management of the depression years over which there was no intelligent supervision. There must be State planning of economic activity if the economic security of the people is to be secure.

. With more people earning, receiving in exchange for their labour power and spending that which they receive, it must necessarily follow that there is more money in circulation, and as money is a commodity, a medium of value, this commodity is exchanged for houses, motor cars, radio, clothing. Such things bring comfort, culture, and happiness to the people, therefore, the standard of living has been raised as a result of there being more money in circulation. Perhaps “ Disappointed ” means that a person is only well off when he has accumulated money wealth. “ You cannot have your cake and eat it, too.” With regard to his statement, where money is exchanged for a commodity and then goes out of circulation, siich is not correct. May I kindly, and not in anv carping spirit, advise him to study the “science of finance”? Mr Savage is doing his best to fulfil the promises made prior to the last election. Ho has still many problems to give his attention to, and I feel sure that if his Government receives a further term of office many of these problems, such as “Disappointed” mentions will bo adjusted. It is not my intention to further continue this correspondence. I think I have proved that which I set out to do in the initial stages. One is apt to be redundant if one prolongs a controversy. While admitting that the cost of living has increased slightly, this is obviously outweighed by the increased prosperity of the people. It is not my custom to reply to anonymous writers, but as your correspondent has never, in his writings, been personal or spiteful, 1, on this occasion, have endeavoured to answer his arguments, so 1 shall now give him the privilege of having the last word.—l am. etc., Alice Heebeht. February 28.