WHO IS RICHER?

Sta,—I am afraid Mr. E. L. Black's investigation of whose share of the national wealth (he means income) has risen most since 1939 is not a thorough one, commonplaces of economic history notwithstanding. The following tables, from The Economist dated November 15th, 1947, page 791, may prove illuminating:—

WAGE EARNINGS

Average Weekly earnings after Tax (1939=100)

Oct 1938 100 July 1940 130

1941 141

3,

1942 154

1943 166

1944 166

33

1945 162

Oct.

1946 176

APPROXIMATE PROFITS of over 2,000 public companies after

deducting Reports published in years to June EPT, NDC and Profits Tax Index of net Profits 30 after tax (Economist estimates) Net ordinary dividend index 1939-40 100 100 1940-41 86 84 1941-42 77 75 1942-43 77 73 1943-44 81 70 1944-45 84 80 1945-46 94 89 1946-47 117 111

This shows that net average wage-earnings have increased by 76%, net dividends by 11%. Allowing for the rise in living costs the wage- earner's real income is substantially higher, the shareholder's sub- stantially lower, than before the war. Adjusted figures showing this are given in The Economist, on the same page. Naturally the man who can dodge Income Tax gains, but pegging prices and profits or dividends, which latter are well below pre-war in terms of purchasing power, will not catch him; he is far too wily. The cure for our present critical situation is greater and cheaper production, which can, in the main, only be brought about by harder work for longer hours. The 10% more • asked for by the Prime Minister could easily be got by a universal fifty-hour week, except in the most arduous industries, coupled- with payment by results which could be introduced far more widely than at present, though admittedly not in all cases. There is no real man- power shortage ; the longer working week would have the effect of recruiting well over a million extra workers, provided it became fashionable to work and not slack. This is applicable to management as well. It is here that the worker will have to unlearn the gospel that has been preached to him for the last thirty years or more.—Yours faithfully, WAL'fER BECK. 12 Neville Drive, Finchley, N.2.