WELLINGTON NEWS

Hokitika Guardian, 11 October 1929, Page 2

WELLINGTON NEWS

INCREASE IN SPENDING. & (Special Correspondent) WELLINGTON, Oct. 9. The apparent increase in popular spending, despite the depression in many branches ,of the national industry, is not traceable to one single cause, but is the outcome of several post-war developments, says the “Westminister. Review” of a recent date. According to the “Review” the wealthy classes, whose influence on the t total-volume of the national savings is greatly out of proportion to their numbers, have mueh less to save than before the war; the' middle and lower classes, who numerically form, much the greater part of the population, have, on the average more to spend. The explanation appears to be that although the depression of the older industries has left its mark on the total of the national income, a larger share of the total is being received by the wage earning members of -the" community, who, further are far more adequately

protected 'than in pre-war times against the worst evils of the modern industrial system. These changes are declared first to be due to a reduction in the cost of many so-called luxuries and comforts as a result of the forward march of

science-; secondly, to a growing desire to acquire them, as a result of oroader outlook fostered .by a more ex-

tended system of national education; and thirdly, by an enhanced opportunity to enjoy : them, ae . a result of a shortening of working hours by 10 per cent.* The “Review” adds further that there has been >a diversion of expenditure from older to newer means of satisfaction evidenced by the greatly reduced consumption of beer and spirits, and facilitated by the ed operation of the system of instalment payment, which has tended to direct some part .ofi.fhefsfream. of, ional spending. tbwa^^4f|fg'ie , f; of eqfl'i sumption' of a nnitufe, in . respect of which manship, has ; developed. ■- ' 1 s .’>< r : ••• ‘ On the questi6n'i I wh^^fi:|l l 6’':h«li , suit ,of ' these complex l is 'berieficial or the point of the thi'ed “Review” ;|is(]c|ifl|iog% • ftsr-4 midable ■ di fficu j t iesl^'Tpe>Student; -of i industry,' regarding ' Shatter- from,; 'me standpoint 1 Of tha aggpgga'te nation-’ al wealth, will expressjrbgret that jbe enjoyment of a higher', standard qf living by many millions of; '-people' has.been, accompanied by ah. unquestionable de-> cline in.the anniiab volume of national

savings. Such an observed may go further and ask j level of post-Avar 'wages can be regarded as wholly unconnected with the depression of some British- industries which are faced with competition from . other countries lower standards of living. But the student whose sympathies are engaged with the condition of the worker himself may reply that the fuller and more satisfying life enjoyed by the citizens at the present time has a sound progressive stabilising social value which can scarcely be bought too dearly. The opinion sometimes expressed that opportunities for increased spending have had a demoralising effect on those concerned seems scarcely to be borne out by the available evidence. Notwithstanding this craze for. expenditure the . “Review” ‘ maintains that habits of thrift are more widespread. It is said that of the new objects of expenditure which have assumed’prominence since the war, it is difficult to discover any that can, be definitely classed as vicious or unhealthy, while many—such as house ownership and regular annual holidays—are quite the reverse. Again, while some of the coinforts and luxuries of to-day may involve a temptation to over-expendi-ture, which modern developments of salesmanship may tend in some cases to accentuate, the evidence goes to show that habits of thrift, not withstanding continued indulgence in much unprofitable expenditure, are even more wide-spread before the war. feut,' after all, the desire of most people will be that the progressive rise in the standard of living of the people may be maintained and that the poverty line shall continue to recede., In the case of New Zealand it has been noted that for some years past the withdrawals have exceeded the deposits in the Post Office Savings Bank, which is the people’s hank, and from this it would appear that thrift had ceased. But when one looks round and sees the number of people who have purchased homes one can realise where the money has gone.; . J