TAXED PROFITS AND WAGES CONTRASTED

The Wage Index Numbers are those of the Board of Trade (Cd. 4954). The Profit Index Numbers are based upon the Inland Revenue Assessments. The Financial Year 1893-4 is taken to correspond with the Calendar Year 1893.

Note.—The wages and profits of 1900 are represented by 100. The wages and profits of the other years are expressed as percentages of those of 1900.

YEAR PROFITS. WAGES.
A. B. C. D. E.
Gross Assessments to Income Tax. Probable Number of Income Tax Payers. Average Gross Income of Tax Payers. Index No. of Incomes. 1900=100 Wages Index No. 1900=100.
£ Number. £ Per Cent. Per Cent.
1893 674,000,000 950,000 709 86.8 90.1
1894 657,000,000 960,000 684 83.8 89.5
1895 678,000,000 970,000 698 85.5 89.1
1896 705,000,000 980,000 719 88.1 89.9
1897 734,000,000 990,000 741 90.8 90.8
1898 763,000,000 1,000,000 763 93.5 93.2
1899 792,000,000 1,010,000 784 96.0 95.4
1900 833,000,000 1,020,000 816 100.0 100.0
1901 867,000,000 1,030,000 841 103.0 99.0
1902 880,000,000 1,040,000 846 103.6 97.8
1903 903,000,000 1,050,000 860 105.3 97.2
1904 912,000,000 1,060,000 860 105.3 96.7
1905 925,000,000 1,070,000 864 105.8 97.0
1906 944,000,000 1,080,000 874 107.1 98.3
1907 980,000,000 1,090,000 899 110.1 101.7
1908 1,010,000,000 1,100,000 918 112.5 101.0
Increase
1893-1908		 49.8
Per Cent		 15.7
Per Cent		 29.5
Per Cent		 29.5
Per Cent		 12.0
Per Cent
Increase
1900-1908		 21.2
Per Cent		 7.8
Per Cent		 12.5
Per Cent		 12.5
Per Cent		 1.0
Per Cent
profits-wages

PROFITS AND WAGES, 1893-1908
(see Table on p. 112).

Thus in recent years the proportion of the national income taken by labour made no gain upon the proportion taken by capital. On the contrary, labour took a diminished share of the increased product.

Since the Boer War labour has barely retained the increase which it obtained between 1894 and 1900.

The seriousness of the position is increased by the great rise in the cost of living, as the following figures testify:

WAGES AND COST OF LIVING

Board of Trade
Wages Index No.		 Board of Trade
Wages Index Number
Retail Price of Food in London
1895 89.1 93.0
1900 100.0 100.0
1908 101.0 109.0
Increase per cent. 13.3 17.2

Thus, real wages have actually fallen since 1895.

Again, as has been already remarked, the Board of Trade Wages Index Number deals with trades which on the whole have gained more than wages generally. Railway wages have been stationary for years, even while the cost of living has been going up. On the German and Swiss national lines the men have been granted higher wages in compensation for increased costs; here our railway companies abuse their monopolistic position to the uttermost in regard to wages as in regard to the public welfare.

In addition to reduced rates of wages in slump years, the working classes are made to bear the brunt of depression through (1) "short time" or partial unemployment, and (2) dismissal.