The Rangitikei Advocate. TWO EDITIONS DAILY. THURSDAY, DEC. 11, 1919. A VICIOUS CIRCLE.

Rangitikei Advocate and Manawatu Argus, Volume XLV, Issue 11960, 11 December 1919, Page 4

The Rangitikei Advocate. TWO EDITIONS DAILY. THURSDAY, DEC. 11, 1919. A VICIOUS CIRCLE.

IF a physician who was called in to attend a pa tient suffering from a violent fever were to prescribe drugs that would assuredly intensify the disorder, he would certainly be regarded as a most unskilful practitioner. Yet this is what is being done with the body politic. The unskilful practitioner politicians have in, obedience to the crassly ignorant Labour rulers, laid down a certain course of treatment, and those nursing the patient are compelled to carry it otit, even though they know that it involves disaster or dissolution. The other day one of our judges in giving an award, could not help pointing out that the increase in wages only meant that further increases ail round would follow, and that in the end no one would benefit. Over in Australia the judges also have been fixing what is called “the living wage,” and they are now increasing it by 17s per week. Obviously further Increase will soon be necssary if the principle is followed of fixing wages to accord with the cost of living, instead of the wages being a measure of value for work done, which latte? should be the only guide. Courts may go on increasing awards and fixing the amount of “the living wage,” but all these clumsy attempts to remedy evils by dealing with effects instead of removing causes, are doomed to failure. When the “living wage” is fixed the next question that immediately arises, is: How is the employer to obtain the money wherewith to pay-ti'.d wages V It is obvious that as he has been a competitor with others he can have been making only a reasonable profit on the results of the work of his employees, and he cannot obtain from the air the mone}’ to pay the increase, nor can ho supply it out of his own pocket without courting bankruptcy. Therefore lie and all tils competitors are compelled to charge their customers more, and these necessarily suffer. They also include the recipients of the new ‘‘living wage,” and the employer necessarily charges not only the extra amount, but such a further increase as will suffice to cover losses, and leave the usual trade margin. In a country which is ring-fenced with a restrictive tariff this process may go on longer than in others where there is free competition to be faced, but the end is no less certain, and the scheme tor improvement no less futile. The experience of Australia and New Zealand points out the grave necessity of the rulers b*iug possessed of some knowledge of political economy, and also shows the results! - foolish attempts to defy or evadeuatural laws.