THE ECONOMIC CRISIS

Otago Daily Times, Issue 21646, 17 May 1932, Page 10

THE ECONOMIC CRISIS

TO THE EDITOR

Sir, —Thanks and appreciation are due to Mr Lloyd Ross for his instructive address on the urgent necessity for the study of economics. H,e very ably points out that if a sufficient number of people had sufficient understanding of economic forces these periodic times of stress and suffering could and would be avoided. This advice becomes especially necessary in view of the fact that,in its material aspects this crisis differs' from all precious crises. Never before has machinery been so efficient. It is said that 65 per cent, of the manufacturing processes are now worked by electrical power. Never before has such large scale production entailed such perfect organisation of labour. Henry Ford’s works at Detroit afford an exarfiple of modern methods of division and subdivision of labour, with its almost incredible speed of production. Hence, an unprecedented quantity of commodities thrown upon the market and a huge army of unemployed thrown upon the streets. The increasing pressure of the unemployed tending to reduce wages to the irreducible minimum, the workers are able to purchase less and less of the product of their own labour. Hence, glutted markets and ever keener competition between sellers, with the inevitable consequence of lower and lower prices. But while the mechanical and social basis of production has become unsuitable for a system of production for profit, it has become eminently fitted for production for use. It remains to effect the transition.—l am, etc.. H. Gow. May 14,