Wairarapa Times-Age WEDNESDAY, APRIL 27, 1938. MONEY WAGES AND LIVING COSTS.

Wairarapa Times-Age, 27 April 1938, Page 6

Wairarapa Times-Age WEDNESDAY, APRIL 27, 1938. MONEY WAGES AND LIVING COSTS.

~]?,VERY breadwinner and every housewife should give attention and thought to the facts touched upon in a statement, just issued by the Associated Chambers of Commerce —facts relating to wages and purehasng power, that is to’ say to the real value of wages as distinct from their amount measured in money. It is, of course, the purchasing power of wages that matters most, particularly to people who are bringing up families. Working in part on. official figures, and in part on its own estimates based on these figures, the Associated Chambers of Commerce concludes that wage-earners (other than farm workers, who have recently obtained substantial increases on their, former rates) have in great part been deprived by higher living costs of the benefits of increased money wages. It is estimated by the Associated Chambers of Commerce that the effective wage rate (in other words the real wages measured in purchasing power) of wageearners other than farm workers showed an increase at December 1, 1937, of less than one per cent over the effective wage in 1935. Even this small increase, it is contended, has 'been secured only by award workers-in constant employment. Higher living costs have to be met by everyone, but workers who are not in constant employment, or who have secured less than the average increase in money wages, of course, are corresppndingly worse off than tliose who are more fortunate in these respects.

It will be interesting to see whether the Government or its spokesmen are able to invalidate and discredit the conclusions of the Associated Chambers of Commerce in the matter of the movement of real wages. Nothing better can be desired than that the facts should be brought out as explicitly as possible. Wage-earners and housewives are not, of course, by any means wholly dependent on official or ex parte statements of any kind in determining the facts for themselves. In any home it is quite possible to ascertain by an examination of income and of what is received in return for the expenditure of that income whether the members of a particular family are better or worse off than they were. What needs to be urged is that account should be taken, not only of the money received, but of what is or can be obtained in return for the expenditure of that money.

Cardinal points to be kept in mind are that it is only when prices are stable, or are falling, that the .full, benefit of increased money wages is obtained by those to whom these wages are paid. When both money wages and prices are rising, wage-earners inevitably will lose some of the benefits of higher payment and may even find themselves ■worse off than they were before the movement of increase started.

The effect on employment of the movement of money wages also is highly important. At best, higher money wages confer benefit only in the extent to which they outpace rising prices. With an equal rise in wages and in tlie cost of living, wage-earners, at a direct view, would be no better off than they were before. On the other hand, every rise in local money wages and prices makes it more difficult for industries within the Dominion to compete against, imported goods aiid therefore tends to narrow the possible field of employment.