By EMIL BJARNASON and BERT MARCUSE HE extent of profiteering 4 in Canada during the past decade is startlingly shown by the publication, National Accounts Income and Expen- diture, 138-46, issued by the Dominion Bureau of Statis- tics. This publication analyses the national income of Canada,* showing who re- ceived it and how it was used. An increase of 138 percent is shown in the net national income, which was $3,972,- 000,000 in 1938 and $9,464,- 000,000 in 1946. This is partly due to an increase in production, and partly to an increase in prices. Current employer theories explain the rise in prices as a result of wage increases. The DBS figures do not bear this out. For, if prices rose only in response to wage increases— that is, if say a 10 percent tise in wages was accom- panied by a 10 percent rise in prices—the workers’ share of the total proceeds would remain the same. But look at the figures: Aggregate Increase Since 19338 _ ‘Labor Income ....... Investment Income .. Agriculture and other unincorporated busi- MUPSBES. oo a 169 percent *National income is defined as the total earnings of all residents of the country. It is the sum of Wages and other labor income investments income including Corporation profiits, and net in- Come of farmers and umincor- Dorated businesses. Thus wages have been the smallest factor in the rising prices. Furthermore, the fact is that the figure above gives a highly exaggerated impres- sion of the increase in labor income. For while it is true that all employed workers received 107 percent more money in 1946 than in 1938, there were 55 percent more people employed, therefore the larger payroll was divid- ed among a larger number of _ persons and each one received only 33.5 percent more money income than in 1938. It is safe to say that the whole of this 33.5 percent was can- ce'led out by higher cost of living and taxes. On the other hand, the other groups, such as farm- . ers, small businesses, etc., in- clude either a smaller num- ber of people than in 1938 (as in the ‘case of farmers) or a much smalled increase in numbers than the 55 per- cent increase in the number of wage-earners, Hence the proportion of income going to labor has fallen even more than the figures show. The real villian in the in- flation picture, however, is neither the worker, the farm- er, nor the small business man. It is the profiteering capitalist, as may be seen from the following figures: Aggregate Corporation Profits Index 1938 $292,000,000 100 1946 $1,174,000,000 402 Thus, an increase of 33,5 percent in the average work- ers’ income compares with an increase of 302 percent in nll hac LELG - ® Will Canada become Doves Second of two articles’E - @® Adrien Arcand hears a ¢ . by Frank Arnold - @ = Vitamin thief Science feature by a TIONS EUN IE atl Larusenies: naee nee ‘Dyson Carter ull Gat me NIB un | uN Friday, November 21, 1947 an American colony? by Tim Buck .. Page 10 all Page We THE FIGURES PROVE IT The profiteers blow up your. living costs the net income of corpora- tions and 169 percent in the incomes of small businesses and farms. Remember this the next time someone remarks that high wages are raising the forthcoming pamphlet on Cost tek Trade Union Research cost of living. eet More w: ant Ads Than Any Other Paper in Canada Peete ete z Pee ee loe cS | USSR already at pre-war levels HE January-September, 1947 plan of the Soviet Union has been carried out 103 percent. Gross industrial output is up 18 percent over the previous year. American economist “experts” estimated it would take the Soviet Union 15 to 25 years to reach its pre-war production record and restore all war dam- age. The Soviets have reached their pre-war industrial level already, within two years and a half of the war’s end, And they push steadily ahead, 18 percent higher each year. By 1950, three years from now, they will be turning out 165 percent of their 1940 production. The “experts” are woeful wish- ful thinkers in economics and perhaps in politics too. EY production figures just re- leased for the current months leased for the current months of 1947 show increases over 1946 as follows: . Steel—10.percent increase. Rail- way car-loadings—1ll percent in- crease, Machine tools—38 percent increase, Electric power—16 per- cent increase. : The percentage increases take on a more lively meaning when the physical volumes they repre- sent are indicated. From January to September of this year, in the formerly WNazi-occupied regions, 153,000 homes in villages and 110,000 rooms in cities, were made available. In the three months of July, August and September of this year, in those same devas- tated regions, no less than one billion dollars was poured into capital construction of railways, steel mills, mines, power stations. Retail trade is up 16 percent over 1946. Workers’ earnings are up 26 percent over 1946. The number of workers has in- creased by 820,000 over 1946. MHESE percentages and vol- umes show that the prime base of the Soviet Union’s heavy industry is flourishing, ‘surpass- ing the tempo set by the. plan. That is the all-important need, the key fact. It is the guarantee _ of success jn light industries, agriculture, education plans, social security measures, etc. But _ these aspects of socialist society — have success to record in this period also. And of them the most outstanding is in the field of agriculture. se The gross harvest for 1947 has — reached the level of the best pre _ war harvest years. It is greater than that of 1946 by 58 percent. And this level has been reached ~ on the basis of a substantially — smaller acreage planted and re- placed with an incomparably — smaller technical equipment of tractors, combines, trucks. Heavy industry and agriculture are now at pre-war levels. Their onward stride is even and rapid. They guarantee that the war devastation of factories and homes will be removed completely within the post-war Five Year Plan and that the Soviet Union will be equipped by them with > an industry two thirds larger _ than in 1940.