CAN WE AFFORD IT ?
SIR,—The article by Mr. W. Manning Dacey last week on the cost of the Social Security proposals renders a most valuable service. It is of the utmost importance that this aspect of the proposals should be under- stood by the electorate, and one has .,nly to start asking questions to discover how profound is the ignorance about it. Those who have forebodings about the cost will not get much comfort from the article, since the author not only assumes a 4o per cent. inflation, but calculates that once E.P.T. comes to an end, as it must, there can be little hope for any reduction in general taxation. It is now fashionable to state that we can bear any burden of this nature provided we increase production, but, presuming that the in- creased production can be sold, this can only be of benefit to those engaged in industry. What is to happen to all those who are not engaged in industry? Apparently they must not only pay 40 per cent. more for everything they buy, without the benefit of increased incomes, but must continue to pay Income Tax commencing at tos. in' the £ and rising to 19s. 6d. in the £ for those with the heaviest commitments. Under these condition, it is hard to see who will buy the additional
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