Inflation and truth
Sir: [would go further than Mr Seldon in last week's issue of the Spectator: the difficulty about inflation is not so much that hardly anyone knows the truth, rather that we tend to look at the phenomenon in isolation which prevents us from seeing the truth. Perhaps you will permit me to draw attention to at least one aspect of it. • Today's world economy is one whole, whose leading sector, composed of the industrial nations, has experienced dynamic growth of revolutionary proportions resulting in a multiplication of — for lack of a better term — toys, but not of basic commodities, resulting in high incomes from all those who participate in the manufacture or disposal of those toys, and in a clamour for a share of the loot from those who don't and whose amibition can be satisfied only by the use of the money press. Paper money hides the cracks in modern society between the leading sector and those lagging behind. It is 'obvious that countries whose economy in toto lags behind must be suffering most, and in comparison with the other industrial countries, Britain belongs to those that lag behind which is mirrored in our rate of inflation. What makes it worse is that with entry into the EEC Britain has entered a race as the slowest horse — against all common sense — with the greatest handicap.
It may be possible to stop printing money in Britain, however no one should imagine this would close the cracks which the paper hides, or save the pound from further losing value. Britain cannot opt out of today's inflation by tricks performed with paper. The oil countries can by raising their prices. And there is the clue. Britain could opt out by ceasing to market the wrong goods, in fact by quitting the toy shop market place altogether, by concentrating instead on quality goods for the much wider world market and on expert services of which there is desperate need outside Europe.
W. F. Barazetti Mill Cottage, The Dell, Hornchurch.
Sir: Only governments can initiate inflation; only governments can stop it. This can be done overnight if they so will, but it is an obvious and powerful part of their policy. Until the government see no advantage in inflation, so long will it continue. By government I do not mean the men in office, or any party, but the body of financiers, bankers and industrialists who in the last resource govern this country, and order our way of life down to the most minute detail.
Inflation is presented to the public as a mysterious sirocco coming from no one knows where, which somehow settles on our monetary system, and blights it. This claptrap is put out by the exponents of this devious and evil fraud to hide their manipulations. Inflation is, in fact, nothing but a heavily disguised form of internecine warfare ruthlessly waged against the workers' wages, welfare, and credit. It ensures that they shall never reap the true reward of their labour. The worker is put on an endless chain. It does not matter how fast he is apparently travelling, in reality he never moves from his original position. He is racing to catch up with the goal of rising prices, but he cannot. Not only is the speed of the endless belt regulated by the industrialist, but the winning post itself is moved imperceptibly farther and farther away. Hence the series of stupid strikes. The printing of paper money, or the fidiciary issue is, artfully pur forward as an explanation of inflation. It has nothing whatsover to do with inflation. The only reason for suggesting that it has is to scramble the issue. It is true that paper money brings with it its own particular evils, but they are of an entirely different order to inflation. The mischievous theories of economists (those masters of a non-existent science) with their specious rulings have also played a not inconsiderable part in inducing financiers to champion inflation. .
And yet the answer is simple. Ignore vested interests, reduce prices radically, repeal VAT and force industry to stand on its own feet, without grants, subsidies, and preferential treatment of any kind. This would produce an immediate and genuine response ffom the unions. But the first body blow against inflation is to reverse the 'dear food policy'.
One has only to glance at the published company results to note the vast profits on each year's trading to gauge the fact that we are living in a multimillionaire economy. It is not necessary to chastise us with the scorpion whip of inflation.
Eldon Carron Priory Cottage, Church Preen, Church Stretton, Shropshire.
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