EXTRAVAGANCE

Hokitika Guardian, 23 December 1932, Page 7

EXTRAVAGANCE

AUSTR ALIA NS CIIA RG ED

UN ECONO MIC E'Xl’E XDTTU R E

SYDNEY, December 19.

Once again, in his annual report, the OoiiimouvealLh -Untiiur-G-ei'et'a] (Air O. .i. Cerutty) reproaches the people of Australia for tlljir extravagance. He estimates the value of the national in. ..cue at about £4SI).OCU,CCO a year, a’it! he says that it 'i s the lirst duty of the people to Jive -within that income. The til.st charge to be provided for i s the overseas loan interest-, amounting to about £35,000,000 a year. During the last twelve months the surplus of exports over imports covered that sum, and there was about £400,000,000 to proving for the needs of Australians within Australia. That amount, if used economically, would appear to be sufficient for ordinary requirements and reasonable comforts and pleasures, although ther e might ,-be little margin for luxurijep. “One of the grave .facts to be faced.” be gays, “is the vei'v -large gums pair] to per So ns who give no reproductive effort in return. Apart from the fact that 45 p(e.r cent, of the old people are in receipt of old age pensions, it ha? been estimated that 700,000 persons in Australia benefit more or less from the dole. All will agree that full employment of the people is of first importance to Australia to avoid the demoralisation of those who receive the dole. The suggestion that persons receiving sustenance should not give any work 'in return has no sound basis; it is essential to make up th e best possible use of our resources in labour and material •Failure to make usfe of them is an economical waste. which reduce,? the margin between production and consumption. In many ways, and ‘in spile of the depression, extravagance among the people continues, and jt retards the return to better timcg. “It is ail economic waste to make work merely to give employment. The avoidable economic waste, which is constantly going on in many ways amountto an enormous total. It is a burden that affects the whole of the people and operates ag a tax. There is a special call upon individuals, without giving up -roa-sonablje con;forts, to refrain from unnecessary expenditure and thus assist in -restoring productive employment and prosperity. Governments can do much less in thu matter than individuals. Money sav.ed by the r,;ua! processes finds its way into productive channels, and thus helps to provide employment.”

Mr Co in tty .sayg that the amount paid out by Australia for social •services- is enormous. It has risen from £8,769,38!: in 1911 to £45,087,916 'in 1531. Thesi:services include old age and invalid pensions, maternity allowance,, '.sustenance and doles, family endowment, c hil. dren’ s welfare, widows’ pensions, education, hospitals, and asylums. The amount received bv Australian Governmentis' from 'taxation is about (£82,000,000, of which £63,000,000 is absorbed in interest, sinking fund, and exchange, leaving only £19,000,000 towards o •total cos tof £45,000,000 for the social services,