SPENDING POWER
Sir, —Mr. Johnstone does not seem to grasp the fact that it is the loss of spending power which has brought about the fall in values of our primary products. Loss of spending power is the cause and low export values the result. Restore purchasing power and you get higher values automatically as you increase the demand. His argument that the wages to-day are 39.7 per cent higher than in 1014 is a fallacy as far as results are concerned, because so many thousands are unemployed. Wages being paid for labour are always a transfer of money, and if I pay Mr. Johnstone, as he suggests, £lO for trimming my footpath it would be a gain to the community, as by spending the £lO he would help somebody. It would not be a loss to me, because I would get my footpath trimmed in return! H. Reimers.
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Bibliographic details
New Zealand Herald, Volume LXXII, Issue 22172, 27 July 1935, Page 17
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149SPENDING POWER New Zealand Herald, Volume LXXII, Issue 22172, 27 July 1935, Page 17
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