Greymouth Evening Star. MONDAY, FEBRUARY 28, 1949. What Mr Fraser Admitted

Greymouth Evening Star, 28 February 1949, Page 4

Greymouth Evening Star. MONDAY, FEBRUARY 28, 1949. What Mr Fraser Admitted

ANYONE reading the ..report of the adclress which the Prime Minister, Mr Fraser, gave to the Wellington Trades Council last week would be pardoned for thinking that a mistake had been made and that actually they were reading a speech by the Leader of' the Opposition, Mr Holland. For, in speaking of wages and living standards, Mr Fraser said, in effect, almost exactly what the Leader of the Opposition has been saying, and saying with emphasis, for years past—that the country could only enjoy its -wealth to the extent of its production, and no more. By implication, Mr Fraser emphasised what Mr Holland has emphasised in almost every speech on the subject for the past decade, that the standard of living cannot be raised merely by raising wages and that an increase in the volume of money in circulation, without a commensurate increase in production, can result only in higher prices, and, consequently, can be of no real benefit to the recipients.

And yet soon, with the approach of the general' election, Mr Fraser can be expected once more to heap vituperation on Mr Holland’s head. He will be painted in lurid colours as the arch-enemy of the country and its people. He will be charged with “falsehoods,” “misrepresentation,” and many similar “crimes.” And yet the remedy for New Zealand’s economic ills which- Mr Fraser would apply —if he were allowed by “his masters—is largely the same as that, which Air Holland has been advocating for years. Three years ago, in a report that, was obviously inspired by a few of the Government leaders, Mr F. P. Walsh, a, prominent trade union leader, put forward a similar policy. It *was rejected—and so was Mr Walsh. Eighteen months ago, Air Nash, in presenting his Budget, spoke in similar vein. AVays and means, he said, must be found, and found quickly (eighteen months ago) to galvanise the people into greater productive activity. But these are voices crying in the Socialist wilderness. Not one step has been taken to put their words into practice, and, it may be predicted with reasonable certainty, not one step will be taken. Indeed, it would be difficult to imagine anything more ineffectual than the spectacle of the Prime Alinister waiting upon a trades council, obviously seeking its approval for his policy but being politely and firmly sent about his business.

What Air Fraser has, in effect, admitted, is that simply by increasing the note issue —by putting more and more paper into people’s pockets —the Government has created the illusion that the people are far better off than they really are. This is the great deception of inflation, a cruel policy that has been deliberately followed by the Government. As has been pointed out, by the time Air Nash gets his cut, by way of social security tax, income tax, and sales tax, and by the time authorised margiift have been added to goods, the cost of living increases by up to 30s for every £1 received by way of extra wages. Faced with a critical test at the end of the year, Air Fraser has good reason to attempt to convince the electors that bp is intent on halting the. drift to chaos. He may be expected to adopt the same tactics as on previous similar occasions. Socialism —ultimate or immediate —will be pushed into the background, and the people will be encouraged Io forget the past and the problems of the present by rosy promises for the future. Despite the manoeuvring, however, the fact remains that he has, in effect, admitted that Air Holland’s economic policy is right—an admission to which he will not, of course, refer from the hustings. The latter will still be, to Air Fraser,- the arch-enemy of the country and the people—and all the rest of it. Air Fraser’s jargon is becoming familiar. The only wonder is that anybody is deceived by it.