A MISCHIEVOUS FALLACY.

Wairarapa Age, Volume XXXI, Issue 9126, 27 June 1908, Page 4

A MISCHIEVOUS FALLACY.

The "Mercantile Gazette," commenting on Dr. Findlay's recent speech, truthfuly remarks: —It has been one of the most mischievous and most industriously disseminated fallacies put forward in recent times by those who seek to exploit the labour interest, that there are huge industrial reserves which can by legislative machinery be drawn upon for the increase of wages and that nothing but the tyranny of capitalisation prevents this from being done. It is further laid down that these accumulations are constantly being increased at the expense of labour, and that nothing can or will be satisfactory until those condition? are reached under which labour, the ally of capital, shall re-

ceivc a larger proportion of the fruits of the combination than it now obtains. Those who have studied the question of work and wages know very well how absurd these statements are, but unfortunately the greater majority of our workers have no elemental"/ knowledge even of political economy, and permit the uselvea to be led away by the hysterical nonsense of leaders who me no less ignorant than themselves. The worker must understand that there are no great reserves, that his wage must be paid out of wealth, which must first be directly [or indirectly th2 insult of his labour, and that after paying that which he ic ceivc.3 it is only in isolated case-, there is anything left beyond that which must be paid in orJer to prevent the withdrawal of the capital employed in conjunction with his 11 bour into other channels of industrj. The figures given by the Attorne - Genera! prove this ta dtjm.mstratinn. There are in thu country, 2 l Jo,tu/0 wage earners of all classes, deducting 20,000 men and women who follow professions, an increase of wage amounting to one shilling per day would absorb 80,000 per week, or over four millions per year. Where is this sum to come from—in what direction must taxation proceed t< obtain the money if the money is ir. the Dominion. Everyone, we suppose, knows that all persons who ar C ' in receipt of an income exceeding £3OO a year.not derived from land or company's shares, are compelled to pay income tax, wage earners are not exempted, but f2W realise how very limited is the number of people whose income renders it compulsory upon them tc send in their Returns and pay taxation thereon. Out of the total number of people living in this country only about one in each hundred pays income tax, the extra one shilling per day increase of wage divided equally between the incoms tax payerj would necessitate a charge of £4OO per year against each individual who now contributes to that tax.