MR. MANDER'S THEORY

Evening Post, Volume CIX, Issue 101, 1 May 1930, Page 11

MR. MANDER'S THEORY

(To the Editor.)

Mander, has been widely applauded for his letter denouncing Mr. Thorn's theory of the cause of -unemploy* ment, and for inferring that the unehiployed are themselves individually responsible for their present condition. The probability is, however, that the unemployed are no less efficient, than Mr. Mander, or than any other average person, but are merely casualties owing to the market being unable to absorli the goods offered, and at the same time show a substantial profit to the manufacturer. From the profit-mal;ing point of view, Mr. Slander* "solution" is admirable,/but otherwise .is fallacious,' as ,in most cases human efficiency has reached its limit, and cheaper increased production can be achieved only by the use of more machinery, with no very appreciable increase in the human element employed. Further, looked at from the broad basis of a love of humanity, whatever small decrease vo£ unemployment in New Zealand might be obtained by means of cheaper productioa, and consequent underselling of the products of other countries, must be accompanied by a corresponding increase of unemployment and misery in thosa' conntries, besides a host 'of other, evils, such, as commercial jealousy and general bad feeling. So long,as the main object o£ production is profit, there must always be a substantial margin between the "value of the goods produced and the spending power of the great army of consumers, who are also the producers. Consequently, the goods that they lack the power id buy, accumulate and form a glut in th*i market, and unemployment reigns . until they" are disposed of.—l am, etc., truth ratax,