THE ECONOMIC SYSTEM.

Waikato Times, Volume 117, Issue 19565, 2 May 1935, Page 9

THE ECONOMIC SYSTEM.

(To the Editor.) Sir, —“Euripides" now tells us that “if any industry, tractor or otherwise, is fool enough to continue producing goods that are not wanted it will go 'bankrupt, and social credit makes no pretence of excusing such folly or paying for it.” lam pleased to be in agreement on this point. Now ilet us see where we differ. Suppose all “Euripides’ ” arguments are correct, that his remedies have been applied, and have produced the ideal social state that we all desire; let us imagine that in our ideal state we have 100 producers of wheat (for instance), each obtaining a return of £IOO annually above his bare living expenses—a total of £lo,ooo—which gives employment to 50 workers at £2OO a year each, on production oi comforts and luxuries. Now suppose 10 more people go in for wheat production and produce an additional 10 per cent, of, wheat; we all have all the wheat we want, so what will become of the additional 10 per cent.? “Euripides" rightly draws the line at financing its production, or creating money to pay for what he describes as folly. Ean lie see any other result of this state of affairs than that which 1 described in a previous letter? The price of wheat must fall. The'£loo that each producer formerly spent on comforts and luxuries disappears; and I would particularly draw “Euripides” attention to the other unfortunate consequence—that the 50 workers who formerly produced these comforts and luxuries are now unemployed. We have again produced the paradox of poverty—not merely In the midst of plenty—but directly caused by that plenty. Now when Dr. "Euripides' " treatment has been faithfully carried out, and within a short time the patient finds that ho has relapsed into his original ill-health, should wo not think it rather strange that the doctor should say, ‘'Yes, the symptoms are the same, but my treatment is no good for you now?” Under these circumstances, would not the patient be well advised to put 'himself in the hands of 'Dr. “Orthodox”? And if orthodox treatment is the proper cure for him after the relapse, might .we not reasonably suppose il, to be the proper cure for the original malady? —1 am, etc., ORTHODOX. Hamilton, April 29, 1035.