Brewer’s Explanation Of Effects Of Inflation On General Living Costs

Bay of Plenty Beacon, Volume 12, Issue 72, 23 July 1948, Page 5

Brewer’s Explanation Of Effects Of Inflation On General Living Costs

“It is absurd to suggest that the surfeit of inflationary money has only a minor effect on the cost of living,” stated Mr H. J. Kelliher, managing director of Dominion Breweries, Ltd. at the annual meeting of shareholders. “On the contrary it is this artificial stimulation of commodity prices by an undue and unwarranted expansion in our money supply which is the main cause of our unbalanced economy and industrial disturbances.” Mr Kelliher went on to say that he considered it unreasonable and unjust to expect wage-earnejs to forego increase in wages, or for business and industry to be subjected to rigid price control while millions of credit and currency were being created and issued into circulation regardless of their inflationary effects on the internal price level and on the cost of living. It is high time stock was taken of our internal economic position, said Mr Kelliher. Whether good or bad times are ahead we have to face the fact that the transition from war to peace conditions in industry is in a very unsatisfactory condition. Our whole stabilisation policy is in a state of chaos.