A-B-C-D-E-F

Bay of Plenty Beacon, Volume 15, Issue 18, 3 April 1950, Page 4

A-B-C-D-E-F

Sir, —Please note the above diagram: The total money received by the earners in production equals the whole A to B, and the total prices of the goods they produced equal the whole line C to D. This looks good. As it equals with the money received, A to B, all goods can be bought! But the thrifty wage earner saves or invests half the money he has received A to E. What then? If all were similarly thrifty, then the remaining money, E to B is not sufficient to pay for th etotal goods produced, represented by prices C to D—the result being that only the C to F goods (one half) can be bought because there is no more money. Bad as the results it would be wrong to blame the thrifty, while total money and total purchasable goods have absolutely no proper ,or even pretended system of equation. This zrings to light another phrase of our present-day economics. The New Zealand or overseas banker (incorporate) having paid out {on our production, at interest. And the investment of savings at interest; and the overdraft at interest; this overhead passed on to the consumer produces a shortage of purchasing power and perpetuates a debt against the nation. This is called Sound Finance! But does not fill the ‘gap’ between the producer and consumer. Yours etc., W. BRADSHAW. Whakatane, March 29.