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Salient. Victoria University Student Newspaper. Volume 36, Number 23. 23rd September 1973

Inflation — A Solution

Inflation — A Solution

Dear Sir,

I am sick and tired of the Labour Government's attempts to try and curb inflation. Under the National Government last year prices rose overall by about 5%, halving the previous year's rate of price increase, thanks to their stabilisation measures. However, even 5% is an excessive rate of price increase.

The Labour Party said that, if elected, they would better the National Party's record in fighting inflation. This was what they promised in November last year. What happened? They got elected, got rid of the National Party's stabilisation system, and attempted to deal with the situation piecemeal, treating the effects, not the cause. Prices are expected to rise by about 15% this year — this is worse than the worst year of the National administration

However, even National was not without fault. In 1970 and 1971, prices rose by about 10% in each year, under National.

This shows that the whole financial system requires reorganising. The system carried out under both of the main parties in NZ today can do nothing to halve price rises, only slow them down a little. In this respect there is very little diference between the parties, except National was a little more succesful than what Labour has been so far.

Monetary reform is required. The use of reserve bank credit, and making use of the special IMF drawing rights will help to stabilise the situation. It's time for a change — a change from inflation to stability — a change to Social Credit.


Vaughn U. Westmoreland.