PRIVATE ENTERPRISE

New Zealand Herald, Volume LXXVI, Issue 23507, 18 November 1939, Page 15

PRIVATE ENTERPRISE

Sir, —Mr. Nash admits in the last two years New Zealand has imported £20.000,000 worth of goods more than should have been brought into the country. Definitely the Government paid that much extra in wages to the people of New Zealand. He gave it to the public to raise their standard of living, and expected the public to spend it. The primary producer, being the only exporter, sent out his surplus goods to cover the costs of imports. This is where the theory fails. The primary producer joined in that orgy of spending and Blowly but surely farming costs commenced to rise, causing the farmers to hesitate before increasing production in the face of rising costs. Previous to this regime the lower wages of the past served as an automatic brake on imports. But Mr. Nash's short-sightedness disregarded and now we have the result. There is no doubt that Mr. Nash and his colleagues are only sticking to their guns because they do not know what else to do. There is only one way out. Competition, as "vvg all realise now, is the life of trade. Farmer.