The Grey River Argus SATURDAY, August 20, 1949. CAPITALISTIC CRITICISM OF BUDGET

Grey River Argus, 20 August 1949, Page 4

The Grey River Argus SATURDAY, August 20, 1949. CAPITALISTIC CRITICISM OF BUDGET

QBITICS of the Budget just about cancel each other out. After saying it, would have electioneering gifts, they now say these are lacking. It is called dull because it is normal and safe. The real grievance is, of course, that taxes on the wealthy are not lowered, even though some wealthy people say revenue in the coining year may not be enough. When asking tax concesions, Chambers of Commerce and other spokesmen of the finance capitalists shy at naming the consequences. Pretending they accept the policy of social security, they actually wish to wreck it in order to escape taxation. Not for them the idea of asking how much the larger taxpayers pocket after payment, although they reckon that the working man could do with a lot less. At the moment there is an inclination to mystify people as to the possibility of this country obtaining credit in North America, whereas the only reason * would be to finance essential im- j ports, particularly for farmers or. public works, without a sacrifice | of essential dollars. The Dornin- j ion is solidly solvent, and within its internal economy can easily finance social security, but externally the sterling crisis makes matters awkward where essential North American goods are concerned.' New Zealand’s sterling' parity policy has paid handsomely. South Africa, despite its gold production, has need to seek United States financial accommodation. Had New Zealand freer access to North American markets with dairy products, imports of machinery could'easily be arranged. " India, like South Africa, is borrowing at New York, and Britain continues to import largely from the dollar area, despite her plan to stop doing so to the extent of another 25 per cent. New Zealand lias- the strongest prospect of another balanced budget next year. Her production is increasing, and her produce is sure of a sale. There is a lot of talk by finance capitalists about, increasing production, although they well know that all available labour is already in employment. They surely mean therefore that the capitalist should obtain an increase in the surplus value of labour products. They do not. deny this, but never acknowledge it. Taxation is '.effecting full employment, and /preventing poverty. If the finance

capitalists and those whom they influence want taxes cut, their object is simply increased profit and interest margins; and they have to admit that the effect must be a radical reduction of the social security and public sei" vices for the working masses. With a return of poverty, wages would suffer, and, with a return

of land speculation so would production suffer- The capitalistic case is the only one against the budget, but. those advancing it deny raising the class issue. That is exactly what the finance capitalists and their dupes are doing, however, when they declare that the budget, is too much in favour of the non-capitalistie section of the country.