THE WORKERS' WAGES.

New Zealand Herald, Volume LXVII, Issue 20723, 17 November 1930, Page 12

THE WORKERS' WAGES.

Sir, —Will you kindly permit me a small space to question something said by Mr. Earlc Vaile in one of his articles. He makes the statement that labour demands an arbitrary fixed wage. Now, if labour in New Zealand does this, I, for one, have never heard of it. lie practically admits that labour is a commodity and subject to the economic laws governing all other commodities. Taking labour as a commodity, its value then is the amount of labour time taken to produce it, equated to gold, or, in other words, the amount of necessary food, clothing and shelter, etc., that it takes to produce it. The Arbitration Court has seen that the law of supply and demand does not operate as far as labour is concerned in New Zealand. Now, if that law does not operate in good times, so that we don't get over-value for our commodity, surely we are not unreasonable in asking that we don't get under-value in bad times, or, in other words, get below cost of production. Waihi. Miner.

Sir, —I have read with much interest and a good deal of approval Mr. Vaile's article under the above caption, but with all his assurance Mr. Vaile does not get to the root of the matter. There is only one equitable division of "the production cake" and that is, (1) wages; (2) rent. (Interest is a subdivision of No. 1.) If rent is appropriated by the State (tho people) it is possible to give to labour what it is entitled to, i.e., "tho full product." If, however, rent is appropriated by individuals, labour's wages are reduced to that extent because the Government must take out of the people's earnings (to pay the costs of government), a sum about equal to tho aggregate rent of tho land of the countij. In all civilised countries there is a third hand in the game—"monopoly." There are other monopolies besides land, but all rest on this, tho root monopoly. We see, therefore, that monopoly "gets without giving," henco wage-earners must "give without getting." Mr. Vaile suggests no remedy for this evil, apparently he does not know that it exists. He seems to think the only way to raise wages is by means of increased production. That is the most important means, but it should be coupled with "equitable distribution," which can only be achieved by the elimination of monopoly. While the "workers" see around them people rolling in wealth who they know full well have done little or nothing for it, Mr. Vaile will fail to convince them that they are not justified in demanding higher wages—even in the absence of increased production. Economic Student.