Wage Reductions and the Cost of Living

Maoriland Worker, Volume 12, Issue 295, 25 October 1922, Page 2

Wage Reductions and the Cost of Living

One of the pronouncements by the latest sUt'ng of the Labour Department of the League of Nations is to make a 60-hour , week tise standard in india, The relation of this t 0 wages in New Zealand is that if cotton or jute gxods can be manufactured in India, cheaper than they are in England or Scotland, then the price paid to workers in England or Scotland must either be .lowered, or the industry perish. If prices <aro lowered. It reacts on every other industry in England, and low prices in England or" Scotland means low prices in w Zealand,' because no matter how high your .tariffs, the consumer has to' nay., so that if hours are long, and wages low in ImVia, it reacts on Great Britain and m turn reacts on New Zealand.

Thia is only arsothor way of saying that ALL WAGES ARE EVENTUALLY'DETERMINED BY THE HATE

PAID TO THE LOWEST PAID WORKER IN ANY INDUSTRY. But what has this to do with the Cost of Living? It has this to do with it: If your wages are .to be tleterm' : iied by the .amount it costs to feed, house ana clothe yours?!?, or youi' family, then whenever prices come do wn your wages will be lowered. If the wages in India say are 25/- per month, ittien. they can produce more cheaply and in so far as they produce more cheaply, so must all other countries, or accept the consequences!—the closing down of the special 'industry. This means then, that your wages must eventually toe such that you can compete with the ■Hindu in li's own. couatry.

This may not eventuate, but capitalism is International and automatically drifts to the place of cheapest production, and unless some other form oi! Economy is substituted for the present system then we must just as automatically drift to the level of the lower-pakl countries. This does not necessarily mean Ciat the wages in New Zealand will fall to 25/- per month, bii v . unless the workers put their own Party in control of this and all other countries then we shall drift to chaos and then to slavery.