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Hokitika Guardian, 19 September 1923, Page 2

Mn. C, A. McCurdy, M.P.. who wn.« an Retire auxiliary of tb*‘ Coalition

Government nt Home, during tire period of the war, has been discussing the unemployment issue in a London newspaper. He has been making a comparison with the American and British workmen, greatly to the advantage of the former, for the reason that the American productive capacity, man to man, was two and a-half times that of Britain. This offers food for reflection in regard to our own country, as well as of Great Britain. The explanation of the position is what arrests attention, namely that the American manufacturer, as also the American worker, does not believe in the doctrine of a limited market, or of go-slow methods. The Americans abandoned the fallacy of restriction of output, and tlio workers of the United States are reaping the advantage to-day. The benefits of the increased wealth following the enlarged production, is revealed in the higher wages it is possible to pay labor. More wealth is being earned within a given time, and this provides more money for wages. That is an economic result well worth pondering over in New Zealand when at the moment, coal miners are out of employment for the reason that they deliberately restricted output.

Tijk British workman has adopted a

vanity ism in contrast to the American, and one of the English captains of industry showed recently that four million British workers each produced only £7o to £‘loo worth of goods annually. That of course was an economic disaster, and when it is realised that in America’s chief industries the per capita production of the workmen is from three to five times as great as the British, there is the reason for the greater opulence of the American worker in relation to wages. The restriction bits back on. the British worker. He is going short of half the wealth he should he first prodiieiug and then consuming. It is being renli.-od by those studying the position closely that Aemriean experience shows that efficient production is the cause, and not the effect of the. expansion of its markets. Expansion of trade is the real cure of unemployment. But with the restriction of output there is compulsory restriction of trade, and that reacts on the working man. ft is essential to get hack to the basic principle, a fair day’s work for a fair day’s pay, and with a decent output, labor will be more in demand. The employer will find security and an outlet for bis enterprise, and the working man will be tlie first to benefit from the expansion of trade which is sure to result.

Tub panacea advocated by Mr McCurdy is to rise wages and reduce the cost of production. But- that is one side of tlie bargain only. Lnicss labor will help to reduce the cost of production, by increased production, there will be small possibility of increasing wages, for the money must he earned before it can be used. The traditional attitude of British labor unions towards speeding up is the first obstacle to be overcome. In New Zealand wo have the plight of the coalminers who find themselves unemployed because the mine owners did not consider the work performed equalled the cost involved. It follows really, that if the earning power of the people is to be increased, there must be more wealth to go round. The money comes from the industry ol the workmen, and if at that source there is not a fair and square beginning, then at the other end, there is not the wherewithal to provide increased payments. P'or some reason, mainly no doubt because of the agitator class, there is distrust on the part of the worker, but if the worker and employer trusted each other more, the insecurity would disappear, and imprered methods of production which would result, would mean a better reward for employment, and not unemployment, as so many are disposed to think erroneously when giving hut casual attention to the economic consequences involved.