CAUSE AND EFFECT

Dominion, Volume 34, Issue 44, 15 November 1940, Page 6

CAUSE AND EFFECT

Representatives of the Housewives’ Union who.approached, the Wellington City Council on Wednesday evening no doubt felt justified in their protest against the proposed increases in certain city tiamway lares. But it was also apparent from the tone and trend of the discussion that the members of the deputation had not given logical thought to the background of this move, to increase public transport charges in the community. The housewives, with very good reason, were dismayed by the likelihood of yet another addition to the week y total of necessary family spending. But they were considering only effects, whereas the real problem is one of causes. Asked whether she was in favour of the 40-hour week, a spokeswoman for the deputation answered in the affirmative. She also agreed that the reduction in working hours had meant an inctcased tramways staff and a larger wages bill. But no suggestion, for the meeting of these increased costs (including an annual item ot £16,000 created by the recent “general order’’ raising wages by 5 per cent.) without raising tramway fares, was put forward, lhe deputation, admittedly, had not gone into the matter. Such a failure to study a simple economic problem from every aspect is by no means limited to the Housewives’ Union. To suppose that concession after concession may be gained, and the consequences of those concessions evaded, is a common fallacy in this country today. But the economic truth remains unaltered and unalterable. Ihe cake cannot be had and eate.n too. As lhe mayor pointed out the tramways are a public utility. That is to say, the citizens own the system and the City Council simply manages it as seems best in the common interest. If the cost of maintaining the system—which is very substantially a wages cost—rises above the revenue it produces, the. citizens have to meet the deficit. It is nobody else’s business. That is the position today. It provides one of innumerable examples oi the rise in living costs made inevitable when wages go up, and the returns for wages in the shape of cither services or goods produced either remain unaltered and in imbalanced relation to wages, or actually go down.