The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, SEPTEMBER 1, 1927. SOCIAL WELFARE SCHEME.

Hokitika Guardian, 1 September 1927, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, SEPTEMBER 1, 1927. SOCIAL WELFARE SCHEME.

Mit Lang, Premier of New South Wales, is prodigal in his promises regarding social welfare schemes. As ho is on the eve of a general election his attitude will no doubt be understood, for lie lias shown a general bent to exploit the political situation to his special advantage. One of his proposals is to extend the child endowment scheme both in scope and value. Feeing that the scheme as it stands, is proving oppressive, the extension suggested is going to make the payment more difficult still for those affected, and the result might hardly be as favourable as .Mr Lang expects. Already, as is evident by the course of events, the employers of New South Wales arc much exercised over Mr Lang’s child endowment scheme, and the burdens that it will impose upon the community. 'Hie New South Wales Chamber of Manufacturers has pointed out that the promised extension of the .scheme will mean an additional cost of £20,000,000 to the general public. Of course Mr Lang proposes that the endowments should lie paid as far as possible by the employers. But in that case the producer will do his best to pass his burden on to the community. In the last resort, as the president of the New South Wales Chamber lias said, either the majority of the factories would close down or they would ho transferred to oilier parts where saner views prevail.” Either way, the people will ultimately bear the burden, and it is just as well that they should realise the truth. This is not to be regarded as an argument against all such industrial welfare schemes, remarks an exchange. Any plan for improving the .position of the worker which distributes the financial burden equitably, is worthy of serious consideration. The British workers’ insurance fund, for instance, is made up of contributions from the wage-earner, the employer, and tho State in reasonable proportions, and the results on the whole are satisfactory enough. But Mr Lang’s child endowment scheme is an attempt not simply to secure a larger share of wealth produced for flic wage-earner, but to do this wholly at the expense of tho employer. This attempt to discriminate against the capitalist class, is of course, characteristic of Mr Lang’s policy, and in his case it is not surprising. But it is important also to observe that it is based on a fallacy which unfortunately underlies a

great deal of modern public expenditure, especially in democratic communities. In countries where the people have secured the right to control public affairs the natural tendency is for them to attempt to improve the conditions of life for the workers ill two distinct ways. They demand a larger share of the wealth that they help to produce, and heavier State expenditure on schemes and projects beneficial to themselves. In both cases they seem to assume that they aro

drawing upon a virtually inexhaustible fund—the State revenue or the financial resources of the employer. And in both cases they frequently lose sight of the all-important fact that neither capitalists nor Ministers of Finance can make money for them out of nothingi The State Treasury contains what the people put into it, and the employer derives his accumulated stock of wealth from the products of industry. To demand heavy public expenditure in the interests of the worker is quite legitimate so long as the worker bears in mind that ultimately he must help to pay for these himself. Similarly, a demand for higher wages or more liberal assistance, from the employers is legitimate so long ns it does not encroach upon the employer’s resources to the extent of ruining him or driving him out of business. Mr Lang’s election policy is to drain more effectually the sources of supply referred to, and the difficulty is going to bo the maintenance of that supply, more especially if his policy succeeds in I driving industries out of the State. I That way leads to chaos for it also reduces avenues of employment and the ; ability to eqrn a result whigh jnpst 3

hear unduly or any unemployment in Murnnce which might he established.