Inflation truths

For the information of David Seymour, there was a time when our first Labour government was applying policies similar to those of Social Credit and there were four unemployed people in New Zealand. Their names were known to the Minister of Finance.

The basic wage then probably bought more than our present one.

This shows what can be done, as opposed to his unfounded claims.

Nor was there any great inflationary trend. A handle of beer, for example, cost 6d (5c) some years after that.

Inflation of prices became a problem after misguided economists started to use faulty methods to try to prevent it.

Nobody can deny that “wage inflation” could increase prices, but it is hypocritical to claim, as most economists do, that inflation of interest rates or taxes will not have the same effects. They also add comparable costs to the industrial process.

Why should it be “evil” to give a fair income to those who produce, but “good” to give more to those with enough spare money to invest?

Or to those with the ability to manufacture money out of nothing?

Does this correspondent also agree with handing over our sovereignty and our assets to international business corporations through agreements such as TPPA? And the ridiculous “trickle down” effect?

John G Rawson

Whangarei