AUCKLAND'S REMEDY

New Zealand Herald, Volume LXX, Issue 21515, 12 June 1933, Page 13

AUCKLAND'S REMEDY

Sir —Obviously our Auckland leaders have adopted the spendthrift philosophy of J. M. Keynes, but facts are decisively against that authority. He himself informs us that "the great mass of the population is living much better than it ever lived before. As for public spending, Government costs in Great Britain, the United States and Germany are more than four times as great as in 191-1. Tf layish spending really had the fruitful effects claimed for it, this would be a time of unparalleled prosperity, but, as most ot us know to our cost, thoracis are rather different. Wo in New Zealand carry on mainly by producing butter, cheese, meat'and'wool, and these products are now selling in the world's markets substantially below 1914 levels. At the same time, our Government and local bodv costs aro three times ns lr.gh as in 1914 and costs in all directions, swollen by inflation and borrowing, remain nearly at boom level, while produce prices have fallen to less than a third. Our equipment is running down under our eyes, because wo are unable to maintain both it and our present standard of living with our greatly diminished incomes. How, then, aro \je to find, from private supplies, from 10 to 30 millions of capital, m large part for bridges, buildings and other public conveniences, that would add almost nothing to our output, none of which would add a farthing to tho prices we receive for our main staples, and one of which would add to oui maintenance costs? All these brand-new policies, inflation, borrowing and lavish spending, have been tried out on a grand scalo throughout tho world sinco the war with the disastrous results wo now seo around us. To repeat these experiments at tho present time would be a sure and speedy means of securing our complete and final ruin. Manurewa. J • J ohnstone.