The Labour White Paper rambles on about its desire for partnership with capitalist industry. It talks of 'a vigorous, alert, responsible and profitable private sector, working together with the Government in a framework which brings together the inte rests of all concerned; those who work in industry, whether in management of on the shop floor, those who own its assets, and those who use its It is worth looking at what this "Vigorous, alert, responsible" private sector is at the moment being forced to propose for the working class.
The am of the employing class is clear. Il is not to cut the rate of increase of working class living standards, or even temporarily to stop Red Weekly 29 August 1974 Page 4 of the working cliss. At present the scale of the economic crisis is such that the ruling class is having to aim at a systematic cur in the hving stundards of the working class This policy i now a quite conseLous aim. As long ago as December the Financial Times spoke of a arget of a cut of about one-eighth in personal consumption during the crisis [the three day week].. If such products and depend upon its success: # drastis cut cannot be aclucred Immediately [!] it must be made up by smaller cuts later.. for example by a 2-3 per cent cut in consump tion in the post-emergency period."
HOW MUCH?
The only dispute in the ruling class at prescot on this front is about 5y how nach the working class's living standard must be lowered. The 9 March issue that •Wages are ar present barely keeping pace with prices, which means, with taxes taking a larger share of higher (money) incomes, that wage carners are becoming worse off.' nie and Social Research in its March report simply talked of 'the end of the ycar when it seems likely that the real standard of living of the wuge carner will have fallen significully. More exact calculations have beco attempted by the Financial Timer and cconomists from The Financial Timer of 31 January calculated that the real net income of a woricer eurning the average wage and with two children tell by 0.6 per cent in 1972-73, after rising 7.6 per cent after the minera victory in 1972, The National Institute of FoonoCUTE the London School of Business Studies, in the House of Commons on 23 by 1.4 per cent in 1973-74, Other figures put the fall much higher. The projections of the economists of the London School of Business Studies in the Sundry Timer on 21 January were: For 1974 real personal disposable income is expected to decline by over 5 per The fall which is already taking place is truly remarkable. There is no doubt that the working class's standard of living was already greatly depressed during the three day week. Industry Minister Benn announced March that the index of average carnings in January showed a fall of 4.5 per cent against December This continued into February when carnings were up only 8.4 per cent on a year previously, while prices went up 13 per cont WORSE The situation has got worse. The Economist on 27 July calcuiated that in the five months since the end of the three day week the real income of a worker with two children on the average industrial wage has fallen by 2.5 per cent, equalling an annual rate of well over per percent.
For some sections the situation is Tar wurse. A newly starting teacher with no family, for example, has a real income which at present is dropping at a rate equivalent to over 15 per centa year.
The middle class is aiso being severely squeezed. A person with a family and two children on 14,000 a year (equivalent to twice the average pattonal wage) is 5.A per cent worse off over the last five
n apologetic leer' jobs. says: "If consultation is to he eftcc-