THE ECONOMIC CRASH
It is no use employers putting goods on the market if they cannot find purchasers, and purchasers are encouraged by the lower prices which will follow lower wages. A glance at the advertising columns of any newspaper wi 1 show that it is largely by lower prices that tradesmen seek to attract custom. We may, as an example of the lower wages, take house painting, in which labour probably accounts for tworthirds of the cost. We may suppose that during the next few months twenty men in New Plymouth will paint their own houses in order to save expense. Probably ten of these would do so in any case, but if the cost were lowered three or four of the others would not do the painting themselves, and thus would employ labour. A small reduction in price will just tilt the balance leading to more labour being required. Falls in prices also reduce the cost of living and make wages go further, thus keeping real wages steady even if money wages fall.—Taranaki Herald.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/WAIPO19310307.2.45
Bibliographic details
Waipa Post, Volume 42, Issue 3269, 7 March 1931, Page 6
Word Count
176THE ECONOMIC CRASH Waipa Post, Volume 42, Issue 3269, 7 March 1931, Page 6
Using This Item
NZME is the copyright owner for the Waipa Post. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International licence (CC BY-NC-SA 4.0). This newspaper is not available for commercial use without the consent of NZME. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Log in