CAPITAL AND LABOUR.

New Zealand Herald, Volume XLIV, Issue 13485, 11 May 1907, Page 3

CAPITAL AND LABOUR.

Sir,—lll • reply to your correspondent' " E.D.L.D.," the cause of want of employ- ' ment (trade"' depression) s ; is tho capital of the community-being in private hands. The wants of the whole community always soar above its income, but the wants of individuals often sink far below. When tlie whole income of the community is not spent, it is : accumulated in the form of food, shelter, i'■ clothing, or something that is intended to • : satisfy a futuro want. When we have too much food and clothing, and too many dwellings, etc., erected, this is a proof wo are living below our income, and, like badfinance, is attended by results as disastrous as if we were living above our income. Jt .. , is believed by our best- economists that if every one spent their whole income, and oo ono saved anything, the demand "and .supply of labour would bo equal. If we spend more than bur income, we should be ap- * proaching a famine, were it not for the increased demand for labour diminishing competition, removing fraud, etc., 'by which • - tho income or productivity of labour would be increased, say, to double, beyond which the income could ; not bo increased without* tho adoption of further labour-saving machinery, •• or more improved . methods. " If "R.D.L.D.," is sufficiently interested" in the subject, I think the two of us could devise ■ a means of fairly and equally solving the problem in, say, a few months. John Johnson.