WAGES AND PRICES

New Zealand Herald, Volume LXX, Issue 21506, 1 June 1933, Page 14

WAGES AND PRICES

Sir, —"Pekau" appears to have got a vrrong impression from Mr. Mellsop'a latter md does not perceive that liowir wages mean lower costs all round. If wages in New Zealand were raised to j;l per day, would it benefit the worker? Yes, for a week or two, until prices lose correspondingly. Then he would leant ;- 2 and so on until every farmer in the country was ruined because his receipta from his sales in the world's markets would remain stationary. The ultimate result would be national bankruptcy. On the other hand, the lower nhe wages, the lower the costs, and if :0s wculd then purchase as much as ;S1 now does, would it not be as good, vhile the farmers with lower costs could compete with other countries in the ijale oi their produce, and all-round prosperity would result. What is lost :>ight cf or ignored by many is that we iiave to hold our own against countries where low wages are paid. If we could compel foreigners to pay 14s per day to .abourers, we could do the same, but if not we 4nust either accept world rates ourselves or go under. Of .course, • there are other matters, such !> - s interest," land values, etc., requiring adjustment, as Mr. Mellsop but while one can discuss these without being ;umped upon, it is like disturbing a hornet's nest ;:o say a word about lowering wages. * Sen ex.