The Guardian And Evening Star, with Which is incorporated the West Coast Times. MONDAY, FEBRUARY 7, 1927. A STUDY IN ECONOMICS.

Hokitika Guardian, 7 February 1927, Page 2

The Guardian And Evening Star, with Which is incorporated the West Coast Times. MONDAY, FEBRUARY 7, 1927. A STUDY IN ECONOMICS.

In the course of some remarks on wages and the tariff, the Mercantile Gazette says that a correspondent asks: “Has not the Government of every civilised country the right to determine the minimum standard of living for its own citizens?” The paper regrets that the answer must be in the negative, as each man, who thinks, must decide for himself. No Government should attempt to dictate the minimum quantity of bread, cheese, milk, meat, and vegetables whic-h should be consumed by any person, nor the quality of clothes he should wear, nor the rent which he must pay. Each person must himself determine such items of expenditure, and in the

case of a person dependent upon wages bis standard of life must be fixed by reference to the amount his pay envelope contains every Friday, and it Is obvious that it must rise or fall according to the amount be earns. The paper cannot help thinking that no Government minimum would enable a man to buy necessaries of lile according to any proscribed standard, if be could not himself provide the money required to purchase them. If lie had earned three pounds during: the week lie could procure better food, and more of it, than ho would he able to obtain if his earnings during the week represented one pound only. Under the New Zealand system of compulsion the Arbitration Court can, and does, award to the worker a fixed minimum wage, which is supposed to he sufficient to provide him and his family with all reasonable comforts, hut unfortunately the effect of the award is two-fold, it increases wages and at the same time causes the prices of commodities to ascend. The economical law that labour costs must increase prices nullifies the effect of the gain; the worker receives with one hand, hut loses with the other, and not only is the increase thrown upon those who accept the award hut aTso upon every other person in New Zealand. That has always been the fallacy on the part of those who agitate for a minimum statutory wage. No man can sell his labour at a price which is unprofitable to the employer; he can only he paid out of the industry at which ho works and if the result of Ill's work is that the employer loses money hv paying-the minimum ordered by the Statute, the workman is discharged. If, however, from sentimental reasons the employer retained him the loss would he passed on to the buyers. The competition of the German nation is easily understood. Tile workmen there produce more for every one pound paid to them than the workers of any other nation except the United States, and must, unless their competitors adopt tlie same ratio of wage to production, and obtain the paramount position m the world’s trade. If the ratio of wage against production is higher in any one country than in others, then goods from them will he unsaleable except at a loss. England may. by virtue of her prestige, obtain a good share of what is going, but in the long run the markets must pass to those who are able to offer, quality being the same, their wares at the lowest price. On. another aspect the paper agrees with the correspondent'' that the Public Debt of this country is, per capita, the heaviest which any country in the world has to carry, and no Government lias yet done anything but increase it. Each Premier when he comes into office accepts what the permanent departmental men advise—that the country must continue borrowing. Every pound levied upon the community for payment of interest lessens the value of wages as increased taxation must decrease the spending power of our people, workers included. There is no way out of the impasse which is being gradually created. Labour should he freed from all restrictions and everyone should “work more, spend less.”