Natural Laws in Industry.

Press, Volume LXIII, Issue 19168, 26 November 1927, Page 14

Natural Laws in Industry.

The other day, in s short article upon an attempt by the Auckland Professor of Economics to defend the Arbitration Act, -we suggested that such industrial stoppages as the Act has averted would have cost the country less than it has paid for the lower standards of energy and production resulting from the Act during thirty years. We also expressed surprise that a professional economist should defend a highly artificial interference with the natural laws of industry. We still think it very surprising, and that it is also regrettable is made very evident by some remarks upon our criticism which* are made by a paper of such high standing as the Auckland Star. • The Star finds it amazing that anyone professing to speak with authority "should talk about the "' natural laws of industry' as if they "were regulations that could not "be broken," and it defines "natural "laws" as "only general state"ments of what usually happens "under certain conditions unless "we think it worth our while to "prevent it." By "the natural laws "of industry" we meant laws of Nature which cannot be circumvented or infringed without penalty. It is the commonest of delusions in this political age that natural laws can be set aside "if we think it worth our " while " to do so. " Surely The Press " is aware," the Star says, " that every "law ever passed dealing with social " or industrial or commercial conditions "interferes with the operation of "' natural' laws, and is intended to do " so." This is perfectly true, but we know also, what the Star seems not to know, that every interference must be paid for. Often the price is small and nobody would complain of it. As often it is grievously high. It is always high when the intent of the interference is the getting something for nothing, and that intent underlies the Arbitration Act as it' now stands. What it implies is that the country will be better off if it weakens or destroys the incentive to energy and efficiency in labour 1 . It imposes a check

upon the skilful and industrious worker, who has nothing to gain by using his skill and energy to the full, and it cannot balance the loss by making the unskilful or mediocre worker into a good one. For this and other highly artificial interferences with the natural laws of industry the country has paid very dearly, and it will continue to pay dearly so long as the Dominion attempts, through high tariffs and statutorily-fked high wages, the impossible feat of lifting itself by its bootstraps.