The Rangitikei Advocate. TWO EDITIONS DAILY. SATURDAY, NOV. 20, 1920 A FALSE MEASURE.

Rangitikei Advocate and Manawatu Argus, Volume XLV, Issue 12208, 20 November 1920, Page 4

The Rangitikei Advocate. TWO EDITIONS DAILY. SATURDAY, NOV. 20, 1920 A FALSE MEASURE.

THE amendment to the Arbitration Act that e.Tapo?;erg the Court to check the tendency to automatic increase of wages was most urgently for it w:is certain that very shortly many inclnatrieo would be compelled to doss down, V/ith consequent unemployment for many workers. It was denounced by a Labour member as taking away ( from labour the only means of meeting the increased cost of living, though it will really tend to keep the cost within bounds and possibly may reduce it. Other members followed in similar strain, and the Leader of the Opposition also pointed out that men are entitled to a living wage. His statement is quite true, but it raises the question of what is a living wage? It should be obvious that this depends on the mode of living. The savings bank returns show that the thrifty were able to put aside out of their living wage last year over three millions more than the previous year, and the gambling machine and the beer duty returns show that the unthrifty were able to spend largely in excess of a living wage. Mr Massey also showed that he regarded the cost of living as a proper measure of wages, He would not do so if he carefully studied the subject. The falsity of this gnage is clearly discernible if wo reflect that .when wages are fixed bv the cost of living, the wage is the same for the single man with no dependents as it is for the married man who has tyo support a wife and a large family. Obviously if a certain amount is required by the latter worker, then the single man requires much less to enable him to meet the cost of living, though possibly he may he a better worker and give more value in return for the wage. This does not leave open to argument the fact that the cost of living is a false measure of wages. The only true measure is, of course, the relation the wage bears to the results of the expenditure of mossey in the employment of labour. Like everything else the price of labour is regulated by the law of supply aud demand, and there can be no interference with this without consequent trouble or disaster, la America at the present time the working of this law is compelling men to be glad to obtain employment at 25 to 50 per cent, lower wages, because tbe demand for their products has decreased, and a fall in the value of one main product at once affects all others. Our new law in av check the tendency to increased cost of living, but the restriction of the import of cheap supplies will continue to tend to increase it as it has done ever since

the so-calleci “protective” fiscal policy was applied by the Seddon Government. Latterly tne country has been’indulging in a debauch of idleness and extravagance and a costly war aggravated its effects. The true remedy is for labour to realise its duty to the community and give fair value for the money spent on employment. If this is done, then money will speedily recover its purchasing power, and wages earned will be of much higher, value.