Stabilising the Economy

No Labour promises were repeated more frequently than the pledges to stop the rising cost of living, to freeze prices, stabilise the cost of living, etc. Already, after they have been in power three months, there are many signs of failing to achieve these undertakings. Food prices went up 4% in January and February alone. Electric Power Boards have been given the green light to make 5% increases in charges. Prices of meat and woollen goods are not fully insulated from the huge rises overseas in raw wool and meat prices. A survey of 200 large companies shows that they intend to boost activities by raising prices. Trying to administer capitalism the Labour Government is powerless to stop these rises despite some good intentions. As the weeks slip by the promised "action on prices" has still not eventuated. We forecast that the "action" will comprise minor subsidies, income equalisation schemes for wool and meat, and some legal mumbo-jumbo of "price orders"—none of which will stabilise prices as they promised in the election campaign.