THE ROOSEVELT PLAN

New Zealand Herald, Volume LXXI, Issue 21765, 3 April 1934, Page 12

THE ROOSEVELT PLAN

Su - ,—-Llie letter from Mr. Bloodworth eulogising Mr. Roosevelt appeared on a somewhat unfortunate date for his purpose, which was, apparently, to show that the labour plan of unlimited Government spending is the sure road to recovery. The news of the day from America was of strikes and riots and unemployment figures risen to eleven millions. To state dogmatically, as Mr. Bloodworth does, that machinery is the cause of unemployment, is to ignore history, as the discovery of steampower, which displaced so much handlabour, doubled and trebled in two decades the population of England and America. How many millions are now employed in trades unknown 30 years ago? It is true the navvy is becoming extinct. The average intelligence grasps the fact that the cry of "starvation amid plenty" is true only in a world sonso and metaphorically. Actually no one is compelled to starve, but as surelv the world's population coidd have a better chance to a full life. We have no surplus; we sell all our produce, but wo produce too expensively. Suppose, even, we had butter gm'ng to waste, it would still in some countries be 2s (3d a pound, and those countries would havo goods useful to us which W£ could not obtain. Our want has obviously an international origin. Mr. .Roosevelt, continuing the world-wrecking policy of drawing gold to American bank vaults, is, in spite of his admirers, doing nobody any good except the goldmines, which are, fortunately, mostly in the British Empire. Gross dishonesty in high places has been tackled by Mr. Roosevelt, for which credit is due, as also for laws to make profits in business compulsory, the latter becoming obviously imperative in New Zealand. Let Mr. Bloodworth note that to pay wages, profits must bo made. Price-cutting defeats the objective of high wages. It must be apparent to most observers that the unnatural rate of exchange is like an application of a four-wheel brake to a great car: it may bo dragged, but in spite of its great power to progress, the wheels cannot revolve. A return to par exchange would automatically increase the worker's purchasing power by about 15 per cent and benefit the taxpayer in like degree. Why does not Mr. Bloodworth tell the working man that how much money his money buys is as important as the amount he earns. Inflation by printing press would bo a far worse disaster for the small wage earner than are futile gymnastics of unnatural exchange rates, though New Zealand commerce can never freely function while under the fear or fact of either interference. E. L. Reed.