DEFLATION.

Waikato Times, Volume 119, Issue 19805, 8 February 1936, Page 9

DEFLATION.

(To the Editor). Sir, —Two points raised by “Psychologist” deserve an answer to themselves. We can call deflation “economy” If 4 suits him, but no proof has yet been advanced to show that it was necessary. To arrive at a correct meaning of this kind of “economy,” let us use an analogy. The production system we can liken to a growing boy while the production system is the garment that Is now too small. Douglas suggests measuring the boy and enlarging the garment, but the diseiples of orthodoxy will have none of this. The, garment is sacred. With “economy” as their watchword they proceed vigorously to hack pieces off the boy. This may be econonmy but is it sanity? His next statement is truly profound. “The emergence from this, as from other slumps, is caused not by a superfluity, but by a shortage of goods.” Now, why did we not think of that before? Let us slaughter our flocks and herds, burn out wheat and throw our butter, meat and wool into the sea. We shall thus emerge from the slump; “Psychologist” says sol Let us all starve ourselves back to prosperity. Wonderful! We must turn to hand-labour and lay down the tool, Quota our butter, our meat and our wool. What matter the sorrow The travail, the pain? So we starve the world back to high prices again! —I am, etc., G. HUNTER. Horsham Downs, February 5.