nIFFIGIAL ORGAN OF THE ARCHDIOCESE OF PERTH. Registered at the G.P.O., Perth, for transmission by post as a newspaper.
ESTABLISHED 1874.
Can Nominal Wages Be Made Real Purchasing
Power? . . .
How Hidden Taxation Bears on the
Wage -Earner
Economists' Major Error About Industrialism and Export Australia Should Be Primarily a Rural Country The following editorial notes are reprinted from the current issue of the 20th. Century, a quarterly review published in It is a thoughtful and timely consideration of two Melbourne. of the major problems facing t he people and the government of this country.
l)ress circle -3/3/11.
instead
of
"ExciseBeer-bottle, 10d. instead of 1/7.
Pot (lloz.), 5d. instead of Bid. Spirits-6/6 instead of 13/(approx.). Tobacco (2oz.)-2/3 instead of 3/-. Cigarettes-small, 4d. saving: large, 8d. saving. Petrol -1/8 instead of 2/71d. "Customs Duty-This is responsible for a rise in the General Level of Prices at least 10 per cent.t (Note: the prices quoted above prevail i nthe Eastern States.Ed.) "It may be objected that because of exemptions on items entering into the regimen of the Commonwealth Statistician's 'C' Series (all Items) Index, the Basic Wage-earner is not so greatly affected by Indirect Taxes. "In fact, however. emphasis on the predominance of the Basic Wage earner today gives an incorrect picture of the situation. Because of higher average earnings per male unit and greater security of employment. the expenditure of the average family, as measured by the average earnings per male unit, should be regarded at the minimum
make his wages worth something. There is no doubt that many trade union leaders realise that that is the crux of the problem, and that the efforts of the powerful organisations they control should be demore widespread and potentially voted primarily to this end. Unmore serious than any which has fortunately, on the part of the afflicted Australia since the tense many, the desire to give the apyears which followed the first pearance of "militancy" diverts them from their responsibility to World War. The industrial battlefield is, to- help the common man in the only common-sense way, and plunges day as ever, concentrated on the The Australian them into a vortex of competing wage system. Council of Trade Unions, the su- claims in which the unionist who the industrial bids highest in his figure for a preme body in level. is urging large in- rjse in wages hopes, by that fact, movement, "A little reflection on the orcreases in wages, but is not op- to win the ascendancy in the indinary expenditure of the averposed to the continuation of wage - dustrial movement. This disastrous age person on such items as pegging, so long as a minimum of tendency to play politics with groceries, clothing, personal refl a week is added to the basic what is essentially an industrial quisites, entertainment and wage and provision is also made matter is aggravated by the fact amusement goods, drink and for an upward movement of mar- that the Communist Party controls smoking, household goods, writgins and the consolidation of war - powerful unions, and an intimiding and school materials, conloadings. The variations in the ated and apathetic rank and file fectionery, make it apparent that wage -pegging regulations made allows Communist officials to draft there is good validity for assumwere intended by the Federal Gov- claims, dictate strategy, and use ing the average burden of Inthe "smear" weapon, to push nonplace the operation of ernment to direct taxes at 16/- per week The industrial problem has been vastly aggravated by the wage -pegging in the hands of the Communist officials into policies in per breadwinner." datermination of the Government and its too-clever econoArbitration Court. In the view of which they do not believe. Everything points to a rigid mic advisers to make Australia an rather than a industrial A very prosperous state of pubthe A.C.T.U., prompted by the pruning of indirect taxation, and raral Commonwealth. Communist - controlled unions. lic finances in a buoyant budget to a lifting of direct taxation on these variations are insufficiently does allow the Federal Governthe lower incomes as the method total fund of fm125 (i.e., total by which the real wage of the elastic. To this view the Prime ment to go a long way towards a the following study, prepared by a Minister makes his reply that the solution of the problem, if the research scholar of the Institute collections less subsidies) was worker can be increased most f42, or about 16/- per week. unions should actually apply to union movement will foreswear of Christian Studies. The figures rapidly. the Arbitration Court and see political advantage, play the game would now need to be varied 'The effect of this impost is Such a policy should commend honestly slightly and rank and since educate its there have been some what improvements they can actuseen by considering how prices itself to the Federal Government. ally obtain, without prejudging the Its problem as far as wages is position, and by failure to apply, concerned is briefly this. The War denying the workers the substancompleted the industrialisation of tial benefits which the new reguthe Commonwealth, and the counlations are designed to permit. a try now finds itself with a vastly While the turgid and involved expanded industrial labour force, a.gument continues to its logical together with a great deal of upconclusion in a general industrial to-date equipment of a type which stoppage, the common man who is Australia did not possess before the object of all this solicitude, is the war. The two new factors add made bitterly aware of the fact up to the fact that once the warthat whatever nominal wage in- file ia tpe realities of the economic remissions in indirect taxation would be altered were no Indi- time shortages are made up, Auscreases he may obtain-the 7/ - situation. With wages and prices since they were compiled. rect charges levied and assum- tralia will he able to produce 'interim" basic wage increase is an remaining at their present level, "The measure of incidence of ing no substantial change is de- manufactured goods in far greater example-his actual economic po- it should be possible for the FedIndirect taxes may be obtained mand and supply arising from a volume than she can consume sition improves hardly at all. He eral Government to make reducby taking the average payment remission of the tax. them. Accordingly, Commonhas found that of the 7/- increase tions in direct taxation, which per head of employed breadwin"Sales Tax-Clothing would be wealth policy is now mainly dewould allow the married man witha little goes in taxation, a little ners. Indirect taxes, being invoted to the discovery of export reduced by 7/ per cent. has gone in increased prices paid out children, who is on the basic cluded in the price of goods and Food (other than items in markets for manufactured goodsfor ordinary commodities at the wage (15/7/- approximately) to services, must be paid by all Staple diet, such as bread, meat, certainly a new phenomenon. In local store-cigarettes and tobacco enjoy the full income without payconsumers. But purchases will this quest for markets for manumilk), 121 per cent. generally. wheat in Victoria, meat ing any taxes whatsoever. In adbe made in different quantities Household and personal re- factures, the Commonwealth finds in New South Wales-and that dition, there is room for heavy reand of different qualities. Howquisites. luxury lines, etc., 25 itself, however, in a most difficult other increases in the price of ductions in indirect taxation which, ever, as no accurate measure is situation. On the one hand there per cent. commodities are promised. before recent remissions, was calpossible, the one chosen is conis the tremendous industrial potenFor him the problem is no culated to take 16/- a week out sidered to be the best alternatial of the United States, the longer by how much his nominal of every wage-earner's income. tive. "Entertainment-Pict ur e The- dominant nation, economically wages will be increased, but wheThe extent to which this form of 'The average payment per atre charges: speaking, in the world. On the ther any increase will mean any- hidden taxation bears on the head of approximately 3,000,000 Back Stalls-l/6 instead of other there is the TIrtish drive to thing at all. The problem is to wage-earner, can be gauged from occupied breadwinners* to the 1/11. (Continued on Page 12.) The Australia of 1947 is not a politician's paradise. The long banked -up claims for higher wages and better conditions in industry have furnished the opportunity for an outbreak of industrial disorder
Practically every problem which Australia faces would have been mitigated had determined effort been made to establish the future Australia on a rural basis of intensive agriculture and small farms.