SOCIALISM AND WEALTH.

New Zealand Herald, Volume LXVII, Issue 20490, 15 February 1930, Page 14

SOCIALISM AND WEALTH.

Sir, —I am obliged, to the New Zealand Welfare League for replying to my question, what is it an owner of wealth does that entitles him to draw an income in perpetuity from that wealth 2 Unfortunately the league assumes that I am a socialist and then proceeds to expose socialism. I am far too intelligent, although I may be forced to vote Labour W way of protest. Thrift, or saving, may explain why a man possesses £IOO, but then he is rewarded for his abstinence by the possession of the £IOO as an order on general commodities. What is" it that he does in return for the 5 per cent, that his £IOO will return 'him in 'perpetuity? If he does'nothing then fie exploitation theory of wages is valid and a democracy -will ■ feel itself justified in confiscation. Does he wait, and _is the 5 per cent, his reward ? No less an authority than Cassel gives this explanation. He argues that a machine renders up its services only gradually and takes, say, 10 years to yield all its services before being scrapped. Cassel argues that this ip years of waiting must be paid for and is in fact paid for in the form of interest on capital. This argument implies that if a man could no longer get, say, 5 per cent." on his capital, society would cease to use steam shovels,and all other such triumphs of human ingenuity and would return to conditions of barbarism. The coming general election will really be fought on this question of social justice and I hope the New Zealand Welfare League will explain by fearless economic analysis the nature of the work done by the capitalist. J.C.F.