FAILURE AND CAPITALISM

Wanganui Chronicle, Volume 75, Issue 152, 30 June 1932, Page 6

FAILURE AND CAPITALISM

Sir, —‘ ‘ Primary Producer’’ criticises our short note ou the proposal to entirely scrap our present system of private ownership and enterprise in favour of a State monopoly of all activities and ownership of all property. Does he realise that under the Socialist system, with wlrieh it is proposed to replace our present system, no one could own any land. Primary producers and all other members of the community would be mere servants Gf a •State machine. There would be no extra reward for ’ those who work harder or for those whose enterprise and ability made for progress. This elimination of incentives for the production of wealth would bring stagnation. Socialism or State ownership and monopoly runs directly counter to all the dominant human instincts which cause men to produce. In the name of equality it destroys the desire to increase our activity because there is no reward for so doing; it puts an end to competition, which ensures efficient service, and by depriving men of the right to hold or ac quire property it removes a big incentive to labour and prevents saving and thrift, out of which future development is made. In short, it would drag everyone down to the level of the least efficient because nothing personal would be achieved by extra efficiency.

We agree with him that reforms are called for, but not a complete scrapping of tho system and its replacement by one which has always crashed when it has been tried. ’Your correspondent evidently has in mind that Capitalism only refers to currency and money—but that is not so. We are, yours, etc., N.Z. WELFARE LEAGUE. Wellington, Juno 28, 1932.