The Cost of Living

Manawatu Times, Volume 61, Issue 217, 14 September 1936, Page 6

The Cost of Living

The cost of living measured by the “all group” index supplied for July by the Government Statistician, shows an increase over the 1914 level of 364 per cent. Those figures would not indicate, however, the full effects of the Government’s recentlyinaugurated wage raising and hours shortening policies. The effects of these policies cannot be gauged with even moderate accuracy until they have been in operation for a full twelve months.

It is of interest to compare real wages, as ruling in 1909-13, with those of to-day. The present wage rate of 16s per day represents an increase over the pre-war 9s per day cent, in money wages. During the period the cost of living has risen by 36.5 per cent. This increase lessens the value of present money wages. The true measure of the present wage is that of its purchasing power. Measured on this scale a wage of 12s 3d daily in 1936 would represent the same value as did one of 9s in pre-war days.'

The 1936 July wage of 16s per day gives a true increase over the pre-war wage of 30 per cent. That is, a wage-earner could purchase approximately one-third more goods and services in return for his day’s work. For this gain in living standards, applied science and invention must be thanked. None could claim that as a people we work harder than did our forebears of pre-war days. ■ ■