CORRESPONDENTS' VIEWS

Auckland Star, Volume LXXIII, Issue 168, 18 July 1942, Page 4

CORRESPONDENTS' VIEWS

INFLATION AND SAVING

(To The Editor)

Mr J Orr's reaction to my proposal* is'typical—"more extortionate impositions on wage-earners." Tut! Tut' More? Were I a would-be dictator I would not propose compulsory saving, but demand "taking for keeps." Maintenance of busmess and competition for labour often compel actions the law does not. Overlooking other confirmation of "above award wages," there is ample evidence in the "Situations Vacantcolumns. Space permitted only a bare outline of my proposal; obviously many details demand sideration, and, while contending that cash payments for wages and salaries should be "fixed" at those payable under 1939 awards and scales I concede that some minimums may be necessary. I would remind Mr. Orr that 5 per cent of the 12« per cent wage tax is a premium entitling the unfortunate to free medicines, hospitals, doctors, pensions, etc.. things for which in the past they had to pay in full from wages. All of us are apt to forget that this 5 per cent may return considerably more in times of distress. And the sales tax —surely it applies to few, if any necessities. It is to be expected that, to provide funds for waging this most costly of wars, luxuries, however satisfying and seemingly indispensable, must be taxed heavily. Were I an employer. I would" no doubt, add excess profits and increased income taxes to Mr. Orr's "impositions," and besides, I would be burdened with innumerable worries due to shortage of manpower and to difficulties of maintaining supplies of necessities. Everyone must be a loser, for war is a wasteful business; nevertheless, too many of us are still trying to gain out of it. But since we are forced to wage war, our effort must be total, and all must make some sacrifices and suffer some inconveniences. Unless drastic measures are introduced to cor trol inflation, those sacrifices and inconveniences will inevitably be aggravated and prices will become even more elusive. PETER MAURICE.