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Salient: Victoria University Students' Paper. Vol. 30, No. 1. 1967.

The Economy

The Economy

If this was a Communist country the Holyoake administration might be tried for economic crimes against the State and punished accordingly.

Being a democracy the worst he can expect for his "economic misdeeds" is an electoral beating in 1969, a reduction in status and salary and, an opportunity to make a comeback three years later.

During the past six years the country has enjoyed rising incomes. For some time it has been clear incomes would not rise at the same rate indefinitely.

Many informed persons, including some in Treasury, have advised Government to conserve some of our record earnings for less fortunate times.

Yet in its wisdom the Government has allowed spending to rise with earnings.

Such a policy is. of course, dependent on continued increased earnings. As soon as earnings cease to rise or fall as they have done in the past six months the folly of the policy becomes clear.

The rate of spending must slow down. An early budget is likely which could increase some taxes and will certainly place a brake on both public and private expenditure.

The universities can expect indefinite delays in building programmes and difficulties in importing equipment for research, etc.

The people will suffer because our leaders favoured their own popularity (however temporary) over measures advocated by economists to solve our economic problems.

Measures that could have averted to a large degree the current situation.

The present economic shambles was predicted and should have been avoided. The fact that it wasn't is an indictment of our Government.

B.G.S.