Disclosure in Company Accounts

Given Britain’s economic situation, an incomes policy must form an implicit or explicit part of any Government’s economic programme. Its modalities and limits are of utmost importance to all socialists. The options are simple: on the one hand, the Government can confine its attempts to the effective production of a wages freeze which is masked by anodyne appeals for dividend restraint and capital (gains) accumulation. This would require a direct confrontation with the unions, and pose the delicate problem of ensuring that each union is dealt with separately, and that judicious minor concessions are made to particular union leaders at particular moments. On the other hand, the only incomes policy that a socialist can support is one within the framework of a more general plan, incorporating both a reversal of the redistribution of wealth to the wealthier which took place in the 1950’s, and the real control of salaries, profits, dividends, capital gains and fringe benefits—a control which is as real, and is seen to be as real, as the control over money wages.

This requires a very far-reaching transformation of the fiscal and accounting system. Titmuss’ important Income Redistribution and Social Change has demonstrated so conclusively the inadequacy and irrelevance of present statistics and taxes on the distribution of real personal wealth to the wealthier classes that no action directed towards an incomes policy and wealth control can be taken seriously which does not involve such a change.