The Wanganui Chronicle THURSDAY, AUGUST 6, 1936. THE OBJECTIVE OF THE BUDGET

Wanganui Chronicle, Volume 79, Issue 185, 6 August 1936, Page 6

The Wanganui Chronicle THU R SDAY , AUGUST 6, 1936. THE OBJECTIVE OF THE BUDGET

r pilE objective of the Budget which the Hon. Walter Nash introduced into the House of Representatives on Tuesday night is the assisting of those who have been unfortunate through illness, inadvertence, or old age, at the expense of those who are in receipt of comfortable incomes. This is no new feature in public finance, either in New Zealand or abroad. During recent years people who have received the lowest incomes, particularly widows, the aged, and the invalids, have felt the pinch of poverty very severely, and this has been added to by the inability of their friends to help them. Now there has been a return to better times it would be callous indeed to begrudge those who have been so heavily burdened with financial difficulties any easing of their position. Nevertheless everything must be paid for. and benefits cannot be bestowed unless somebody provides. In this case it is the taxpayer who provides the wherewithal to maintain the unfortunate in a better condition than has been their lot during recent years. There are two ways of dealing with the indigent: One, leaving them to the beneficence of private charity; and two, placing the burden on the taxpayer. Of the two the latter is to be preferred. The first method has been tried over a long period, and experience has proved it to be not sufficiently effective to merit dependence on it. It may have developed the better natures of a large number of people, but those who were too individualistic to heed the wants of others left the burden to those whose compassionate natures made another’s need their own compulsion. The intervention of the State takes no cognisance of natures, it regards only one practical consideration, namely the ability of the taxpayer to pay. The State then sought means to fashion taxes so that the burden fell upon the shoulders of those who were financially able to bear it. So long as this principle is adhered to no objection should be raised against the redistribution of income by State intervention. But it should always be remembered that the granting of further social services does not create new money. Social services may. and generally do, add to the sum total of human wellbeing. but there is a debit side of the ledger which must always be kept to the forefront. Those in receipt of comfortable incomes find that social pressure is exerted upon them to pay for things which others have provided for them at below eost. A conspicuous illustration of this is provided by the medical services. Medical men could not afford to give their time without remuneration attending to patients in public hospitals if they did not receive fees from their private, patients who are in receipt of the higher incomes. The paying patient contributes to the medical attention of the non-paying patient, both in the rates paid to Hospital and Charitable Aid Boards as well as in direct payments to the medieoes. Such a process obviously cannot be pushed too far; for if taxes rises beyond a certain ratio there must be a curtailment of expenditure in other directions. For instance, an increase In the attendances at public hospitals and a decrease in private patients would compel medical practitioners 1o demand payment for their hospital work. There is another debit phase which must be kept in view, and that is it is unwise to take away too large a proportion of the reward for individual effort. If this be done then the individual will come to realise that the reward is not commensurate with the effort, and he will cease striving accordingly. This would result in a decrease in the production of the community and the whole of the population would be compelled to suffer a reduction in living standards, which would eventually fail most severely upon the people whom the Government desire to help most. When considering the Budget now' before Parliament, therefore, it will be as well to view the Government’s intentions and actions from sufficient distance in order that the credit and the debit factors may be maintained harmoniously together in the one picture.