THE EVOLUTION OF ECONOMICS

NZ Truth, Issue 754, 29 November 1919, Page 8

THE EVOLUTION OF ECONOMICS

It doesn't require a professor of economics to give the reason why. Prior to the war the Dominion's man-power was about 300,000. Out of this 112,500, the flower of the land, enlisted; 17,000 halve jpaid the supreme sacrifice, and about 20,000 permanently Incapacitated, and th© recent epidemic adds another 5000, making the total 42,000; and, with, no Immigration, we will be handicapped for a year or bo. And does not this also ap.ply to the whole of the Empire? During the second year of the war, production of man's requirements was reduced materially and our armies and munition workers had adopted a higher standard of living, and twice as I much used m the shape of clothing, boots, meat, butter, cheese, etc, etc., which thousands upon thousands unfortunately were never accustomed to prior to war. and at the time the prices of those commodities were not a burden to the soldier and the munition workers, as m the first Instance the soldier didn't pay for them, and the munition workers didn't feel them owing to the enormous wages paid. Now the war has ceased the soldier is seeking employment and the munition worker's wages, for argument sake, are down to about 35 per cent, over pre-war rates, with his requirements about 50 to 60 per cent, higher, owing to a world's shortage and with a de-^ sire to live at the same status as during the war. The Empire's wheels of industry (with a tired people) are ,at a reduced speed for the want of raw material, and the products. of the land are about two years behind, and until they get back to normal, and with huge shortages as at present, the pinch will be felt. The workers rig-htly demand a higher standard of living, which creates a heavier demand on production, and until it is overtaken, with the Continent on the verge of starvation, how can prices recede? If they do, wages must also, m a line with Japan and other Eastern countries. This is a complex question. Profits are now taxed 7s 6d m the £. For instance, an industrial conI cern with a working capital of | £100,000, paying 7 per cent., yielding £7000, Is taxed 7s 6d m the £, which brings its earning power down to : about 4% per cent. Who would be' worried about industry when War Bonds are paying A\U per cent., free from taxation? This Is the question to be considered for the salvation of i the DominionChampion wishes his people to l understand that this essay is not for 1 advertising purposes, but to guide his candidates, as he is an acknowledged authority on economics, as well as nruocle-ralslng. V., AUCKLAND."