WAGES AND PRICES

Bay of Plenty Beacon, Volume 13, Issue 30, 8 December 1948, Page 4

WAGES AND PRICES

Sir, —The key .to the problem confronting us! Industrial unrest, and its feiiow travellers—-is centralised on wages and prices. The suggestion is (and imperative) that instead of increases in the basic wage .being paid through industry from new bank credit, such increases be paid direct to wage earners, in the form of what might be termed a “National Production Bonus”—that is, a bonus in addition to the wages already received. As the new money for This bonus would not be paid through industry, there would be no increase in wage costs and consequently no increase in prices. As the size of the increase in bonuses would be directly related to increased potential production in industry, wage earners would have an incentive to increase production, safe in the knowledge that they would share in the benefits of the increased production.

Apart from paying bonuses from credit expanded against increased potential production, portion of this credit could be used to lower prices to every member of the community by an extension of the subsidy system. Until constructive action is taken about the problem 1 of prices, the worker will continue to have his grievances exploited by the political agitators, and slowly, but surely the Police State will come in. The present method of controlling wages and prices is merely imposing a bureaucratic system of regementation on industry, and stagnating the incentive to work. Yours etc.. W. BRADSHAW.