The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, MARCH 21, 1927. WORK AND WAGES

Hokitika Guardian, 21 March 1927, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, MARCH 21, 1927. WORK AND WAGES

This subject lias been raised very pointedly by the action of the Government in the effort to deal with unemployj meat making a cut in rates of payment. The Government proposal is an exceptional step to deal with an ex- ] ceptionnl position. But the task was ■ beyond the resources for the number out of work was abnormal. The Government was forced to come to the rescue with relief works which were undertaken, not of necessity, but because of the necessity of tbe workmen to be accommodated. The position was exceptional, but there is not the danger of lowering wages thereby. This, notwithstanding that it lias been stated “if tile level of unemployment is high there is a strong presumption that the level of wages is too high.” Tn a study of the situation due to unemployment, the retiring President of the Auckland Chamber of Commerce said that “the present, degree of unemployment was probably the price wo are paying for attempting through our Arbitration Court to keep wages on an artificial —not an economic basis.’’ There is probably a good deal in this aspect, though the statement cannot refer to all wages. There are certain classes of work which are too highly paid for the value produced, and it is in the ranks of such that the main body of the unemployed is to be found. As to a general remedy for the situation, palliatives are being tried. The Government-effort is of such a nature, but even though the rates of pay are reduced, it is uneconomic in effect, because work is being done which is not urgent. Money is being used for services which might be used with more general economy for the public weal in other directions; or in point of fact, the money so used, could be used to reduce taxation, and so leave more money among the peonle for e-mornl natural development. In effect the expenditure is uneconomic and tends to create conditions and sustain them which in turn have the tendcnc--still more accentuate the very evil it

is desired to cure. -“A sullicient increase in the volume of production would have the desired effect of restoring the country to a sound economic position. Jn this connection a valuable public service will be rendered by the Government if it will enlarge its activities in the direction of scientific research. the investigation of economic problems and the elimination of waste foj- the benefit of industry and fanning” Rut these quoted suggestions by the Auckland speaker are slow moving methods, and there is also the question of marketing to he taken into ac-

count when more production is involved New Zealand c:iuld produce more timber stud give more employment. but the industry is ham: vi ed by i esl ri< 1 ive regulations. It is producing more produce but the attempt to regulate the market is proving disastrous

- -due to Government interference, ruder free marketing for timber and butter alone, it is safe to hazard a guess that the 'Dominion would he bettor off by mi'liolisto-day, and with that accession of wealth there would have been no unemployment problem at this unusual season of the year. There is

surely a lesson for the future of the country in this aspect of the problem which is bound tip essentially in the matter referred to recently in these columns—‘dess Government in busi-

ness.” As to work and wages in par-ticular,-the Auckland speaker gets back to the true economic outlook where he remarks that labor and labor leaders should look not: so much to the wages as to the value of those wages in terms of their purchasing power. ‘‘.Men,” he remarks, ‘‘do not eat and clothe themselves with their wages. They eat and clothe themselves with what their wages will buy.” This truism lias bee a recognised in America, and the worker in Unit country is reaping the benefit. A fresh mental altitude is necesnry for this question, and the facts need to be faced as they are, and not- as we wish them. That realised and there will he a cleared understanding of the complexities for the economic situation.