“THE FAILURE OF CAPITALISM”

Otago Daily Times, Issue 21668, 11 June 1932, Page 14

“THE FAILURE OF CAPITALISM”

TO THE EDITOR. Sib,— One of the prevalent parrot-ccies which by constant repetition may be believed by thoughtless people is that capitalism has failed. It is made by Socialist propagandists who allege that our varied social and industrial troubles are due to the break-down of oqr present system. Capitalism may be taken to be the name for the system of State-pro-tected freedom for the individual to work, to spend or to save as he pleases—a system under which all countries have progressed since the days of slavery. To say our system has broken down is, of course, nonsense, because some of the ills for which the Socialist reformers blame capitalism are no more due to that system than they are due to the fact that most New Zealanders take tea with their meals, while many are the direct result of the mishandling of affairs by post-war politicians in such matters as war debts, tariffs, and, not by any means the least, the steady growth of State interference and unfair competition with private enterprise. These have clogged the wheels of industry in the same way that dust prevents a watch from keeping time. Under the system of private enterprise the great progress of the last 100 years has resulted, and has shown a marvellous improvement in the general well-being of the people. Everyone can use his personal initiative. Under Socialism, individuals would no longer be free to pursue their activities as they desire, but would come under the dictatorship of a State bureaucracy, which would do the thinking and planning for everyone. There is no guarantee that such a bureaucracy could conduct the multitudinous activities with the same urge and keenness that private individuals can as free agents. Indeed, if the history of Socialistic experiments during the past is examined it will be seen that none has been successful. Even under capitalism the State enterprises have almost invariably proved failures. There is no serious argument against the theory that our present system has many abuses, and is not carried out on the best lines, but that does not justify the complete abandonment of it. It only calls for a reconstruction which will enable private enterprise to operate to' the advantage of the whole community i lie chief help in this direction would undoubtedly be a full and honest co-opera-tion between capital and labour through a system by which each would get its fair share of production. Hitherto each has tried to get more than its fair share,

and much disorganisation is the result. To destroy the present system of private enterprise which has shown such wonderful progress would be like smashing a good watch because it failed to keep proper time. It is repair that is called for—not.destruction in favour of a completely new machine. —We are, etc., June 10. N.Z. Weifare Leaohi.