THE VICIOUS SPIRAL

Otago Daily Times, Issue 24334, 26 June 1940, Page 11

THE VICIOUS SPIRAL

TO THE EDITOB Sir, —If wages are raised in New Zealand what will be the result? (1) Prices will rise in the same proportion, and the workers will be no better off. (2) Great Britain will have to pay more for all the goods which she has to buy from New Zealand. Can she afford this? No. Great Britain’s war costs at present are enormous. What will happen if she has to pay higher prices for her food from New Zealand? She will buy more from Canada, the Argentine, Australia, etc.. and we shall be left with our foodstuffs rotting cn our shores. Or if Great Britain has through necessity to buy our goods at a higher price it will leave her with less with which to buy war materials. Remember, we ourselves need antiaircraft guns and munitions. What country will take our goods if they are too costly and where will we get cur funds to buy foreign goods? The Government of Great Britain and all her dominions will, as well as America, all be in financial difficulties after the war. The higher the tvages now. the less money will these countries have in their exchequers after the war. The last slump was caused by greed. Everyone thought that the last wai was a glorious time to demand more money, although everyone knew that Great Britain, France and Belgium were fighting for their existence. No one cared. After the war Great Britain. her dominions, France, Belgium, Italy and Germany were left with no money with Which to carry on their trade, and so the slump descended. The capitalists were in the same boat as the rest; they had houses, shops, factories, etc., but no money to carry on trade. As far as they could they maintained their staffs, paying them out of capital. No one was buying: no one had money to buy. Gradually with care and management things began to adjust themselves, and the slump C6HSB(i No capitalist Is to be allowed to make money during this war. Then it stands to reason that if the workers insist on higher wages they and they alone will cause a slump the like of which has never been heard of before. Isolate a country! One cannot do it. This is a war for Christianity against the powers of darkness. Great Britain and her Allies have taken up “the battle axe of God.” If we love gold or money now more than the welfare of the world “ the sowing and reaping are inevitable.” We will bring retribution and destruction upon ourselves.—l am, etc.. L. Maud Reynolds.