Vicious Spiral of Wage and Price Rises

Manawatu Times, Volume 64, Issue 301, 21 December 1939, Page 9

Vicious Spiral of Wage and Price Rises

CONTROL INSTITUTED IN BRITAIN RUGBY, Dec. 18. ,In connection with, the statement by Ministers expressing their intention to take necessary steps in regard to the undue rise in prices the Board of Trade made to-day the first order under Section 2of the Prices of Goods Act passed during the last session of Parliament. The prices of goods order will come into effect as from January 1. j The order contains goods mainly and necessarily used by a large sevtiu of the population, the retail prices of which must bo limited to those prevailing on August 21. Where prices are increased they will represent tho actual ris-e : n costs and expenses. The list will be modified and extended when necessary and it is probable t.Nerefore that further orders will be made from time to time. The main objective of tho order is to check the so-called vicious spiral caused by continuously rising prices followed by a consequent rise in money wages, again followed by a further rise in prices and so on, which sooner or later results in inflation. Luxury and more expensive lines of goods are not included in the list. < The boot and shoe pperatives are to receive a three-shilling increase for men and two shillings for women for every ten point rise in the cost of living. The Board of Trade, in order to check profiteering, is publishing the pre-war prices of essential commodities whereby consumers finding current prices excessive can ask the price regulation committees to investigate.