And Ritchie on the TUC report

What it shows is how much the average worker has lost because wages have not kept up with growth over the last thirty years.

The “missing income” went to profits and investment returns, of course.

The trouble was with profits concentrated in very few hands and wages widely spread people couldn’t afford to buy the products that were being made without borrowing back the wages they’d lost from the people who’s taken them from them with the result that debt skyrocketed and recession followed.

And the tax take fell too as profits are taxed less than wages.

The result, austerity?

Oh dear Lord.

As the wage share of income fell because taxation rose (that VAT thing) then it\’s very difficult indeed to say that the tax take fell as a result of the wage share of income falling.

4 comments on “And Ritchie on the TUC report

  1. We’ll see how effective the planned 83% Tax rate which Ritchie and Balls are introducing in 2015 is at ‘improving’ income Distribution.

    What an absolute tool…..

  2. Not just VAT – wasn’t a significant part of the ‘wage fall’ due to Brown’s increases in employer’s NI?

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