THE VICIOUS CIRCLE

New Zealand Herald, Volume LXIX, Issue 21346, 22 November 1932, Page 12

THE VICIOUS CIRCLE

Sir, —I wonder if any of our politicians or public men have, in their search for & a solution of the unemployment problem, discovered the vicious which exists at the present time, and which is the cause of depression and unemployment ? Jones is a good tradesman. He is unemployed because the employer cannot afford to employ him owing to the heavy taxation demanded by the Government to help to keep Jones in. employment at unproductive relief work. The" Gov-. ernment pays Jones less than half the wages he would receive if he were employed at his trade. Mrs. Jones has no money to spend, and trade in general suffers. So the vicious circle is completed. Why not break this vicious circle? The Government should relieve the employer of a portion of hi;£ taxation provided he employs Jones. Jones is working at his productive trade. He is earning move money. Mrs. Jones is' spending more money. So that if all the other employers were employing all t}ie other Joneses, Smiths and Robinsons at. their trades the wives of these tradesmen would bo able to replenish their sadlv-depleted homes, and the products of their husbands' work would be bought up. It is a well-known fact that it is the workers who spend most money, and once the supply is stopped trade becomes depressed. Let the Government put an extra tax on the luxuries of life and the people . who can afford such luxuries are the peoplo who should pay the. taxes. John Fraxcis.