This graph, again from a TUC source <\/a>but using data from the Office for National Statistics is another explanation:<\/p>\n In the 60s and 70s wages took around 60% of GDP.<\/p>\n Now it's about 53%.<\/p>\n That's a massive shift away from the reward to work in the economy.<\/p>\n That means people are paid less for the value they create.<\/p>\n But it also means that value is taxed less as profit is now (unlike the 60s and 70s) much less taxed than labour.<\/p>\n And this is despite a real rise in the population.<\/p>\n The result is there is more demand for public services and less to pay for it. So we have a government funding crisis.<\/p>\n And we have people who are forced to borrow to make ends meet.<\/p>\n Austerity won't solve this. Only a real increase in the reward to labour will do that. Our economy is out of balance. Unless that is put right we're in trouble.<\/p>\n And we can put it right. We can invest in business, housing,\u00a0infrastructure\u00a0and the services we need. I explain how, here.<\/a><\/p>\n All this is possible and affordable. But it will take politicians and economists who believe that people matter; that paying people fair wages matters and that finance has to be the servant of people and not its master.<\/p>\n Is Labour listening? I don't know.....<\/p>\n","protected":false},"excerpt":{"rendered":"![\"\"](\"http:\/\/www.taxresearch.org.uk\/Blog\/wp-content\/uploads\/2012\/09\/Screen-shot-2012-09-11-at-16.33.07.png\" "\\"Screen")
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