NATIONAL ECONOMY & INDIVIDUAL

Pahiatua Herald, Volume XXXVI, Issue 11027, 27 December 1928, Page 2

NATIONAL ECONOMY & INDIVIDUAL

WHERE ARE WE GOING? Tlie people of New Zealand have by their votes decided for a change in Government, let us hope it is for the better. It might be well at tins time to point out that though we often fail to recognise the fact much of the Government of our country does not rest with the elected or appointed persons so much as it does with the individual citizens in the mass, It is a time for general review. W'e hav© been dissatisfied. Let us then, as a people, decide clearly on what exactly we want, where we are going as a Nation. The change of one set of individuals in charge for another does not absolve ms from responsibility, if New Zealand is truly a democracy, in respect to what are to be the lines of our National economy. As the peopla influence, assist and sometimes misdirect, those they have chosen to rule it is necessary they should understand what is of vital importance, the principles of sound economy. After all the finance of a State is just like that of a household or business, we must regurlarly pay our way or get into trouble.

“My other piece of advice, Copperfield,” said Mr Micawber, “you know. Annual income twenty pounds, annual expenditure nineteen nineteen six. result, Happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result. Misery. The blossom is blighted, the leaf is withered, the God of day goes down upon the dreary scene, and —and in short you ar e for ever floored, as I am!” Charles Dickens was a great domestic novelist. He knew the people and with a. few masterly strokes of his pen he reveals us to ourselves, for human nature does not change. Mr Micawber’s philosophy of life is just as apt to-day and will be just as apt in our great-grandchildren’s time..

There are many who dream that in National affairs by som e method of financial necromancy the Government can produce wealth and the people enjoy it without the laborious tasks of earnest production, careful saving and the making of sacrifices. This idea is based on illusion as wealth from the national standpoint at any rate can only be acquired by productive work and caution in respect t.o expenditure. The nation’s purse is not like th e widow’s curse. The spendthrift’s progress may appear very pleasant but economists and bankers know that it cannot last indefinitely. People who have to get credit at the corner show, much the position of Australia and New Zealand, learn the difference it makes when they cannot pay “ready” and have to ask for more and more credit. This is the first thing we have to fully realise before we will be able to really assist our new Government and place our country on the very soundest basis. LIVING ON CREDIT.

We recognise that it is not taken as a palatable or cheering doctrine to tell the people that th e safe cours e is to practice careful personal economy’; that things will only be better when we increase our production and pay for what we want Or go without. The politician will not catch many votes with such poor bait but as we are not politicians, and not concerned with securing votes, we venture to tell the simple truth.

The Dominions and Commonwealth overseas are very much disposed to living on credit. Loans have been raised and expended not quite in the directions of obviating the necessity for still further and greater loans; but in rather cheerful assurance that “ou credit is good” and we can come again and again. The calls for to live upon credit in New Zealand have come from the people themselves. The farmers want more credit, the workers ditto and many others the same. W e are reminded of a chapter in the book “My life and work” by Henry Ford. It is there described how when a slump took place in the American motor industry all concerned were rushing to Wall Street for credit except Ford, who said: “No! What we want is not more money but better organisation, greater output and improved trade.” He proved to be right. Still the people are seeking more credit and the politicians are there to assist them in getting it. The new Prime Minister, Sir Joseph Ward, has promised to raise over a period £60,000,000 for the fanners and workers ; £10,000,000 for the completion of railways. There will be additional loans for some Public Works. It is said this does not mean much more than Reform was borrowing. Let that stand for the present. The questions arise of whether w e can thus go on living on credit without seriously mortgaging th e not very distant future.

It is admitted that the credit of New Zealand stands well at present. We are assured, however, that credit is a tender plant which must not be handled too freely. More credit for the farmers and workers means for them primarily at least more debt. Can we b e assured of such greater production or higher values as will offset thes e additional burdens. We rather fear that there is too much of a tendency to live for the present and let the future take care of itself. All the parties from time to time declare for less borrowing but in the weakness of political human nature they lend themselves to the idea that it is only by extended credits our I>eople can live. Where we are _ going, or rather where we are drifting, calls for the most serious consideration. It rests with the people themselves. If we have to increase production in order t 0 preserve our national economy then it would appear to be wiser, and less burdensome in the end to somewhat restrict our borrowing habits, to concentrate on scientific research, greater organisation and encouragement of initiative and enterprise If the people themselves will give the Government a lead in these directions it will probably be the best assistance that can be given towards a sound national economy. —Contributed by the New Zealand Welfare League.