INFLATION ?

Nelson Evening Mail, Volume LXX, 26 May 1936, Page 4

INFLATION ?

‘‘ONWARD and upward,” “with the brakes off” and with “the sky as the limit,” the Government is proceeding. How is it financing it? With an expenditure of seventeen and a half millions proposed for public works —not a very huge sum if value is received, as the Minister promises—plus two and a half millions to be used for assistance in unemployment relief, the Government proceeds blithely along the road which is to lead the workers to the ultimate goal of “the American millionaire” standard. This twenty millions of expenditure is not the end. The Government is also committed, by promises, to still more additional expense. There are to be increases in pensions—most desirable, if practicable—full restoration of wage-cuts, and other proposals which must add seriously to State expenditure. No one wili take exception if these proposals can be carried out without adding further burdens to those already carried by the community as a whole. Yet how can it all be done? Does it mean an increase in taxation which the leaders of the Government appear to recognise is hampering recovery? Or are we to experience “costless credit,” which we do not believe is “costlessly” achievable? With State control of the Reserve Bank in operation, inflation can be inflicted upon the country. The dire results of inflation have been experienced in other countries. Is New Zealand now to experience inflation, its temporary “boom,” and its sad aftermath?