'MUGGING' THE HIGH ST SHOPPER

A decent standard of living is the most basic aim of the working-class movement. The history of class struggle is essentially a record of the fight to achieve this important goal.

The democratic rights built up by the labour movement are the foundations on which today's living standards are based-the right to work, the right to strike, the right to wellare, the right to shelter and, above all, the right to wages large enough to provide the breadwinner and his family with good food to stay alive and healthy.

Only in very recent times have these rights, especially the last one, been secured by the working class of Britain. Now, once more, they are in grave jeopardy.

Apart from legally stripping the working class of the rights which come from strong trade unions, the Tory government has launched a direct assault on the freedom to fight for higher wages.

Pay is kept down by law. Those who struggle for increases are considered lawbreakers and face fines and imprisonment. But prices, particularly food prices, are allowed to rise. In other words the Tories are attempting to drive down living standards.

This series is an investigation of the cost of living and prices. The focus is on groceries-the wide range of goods the housewife can buy in a modern supermarketstill the biggest item of expenditure in the working-class budget, accounting for about a third of total expenditure.

These articles aim to explode some of the myths about prices and the so-called 'free market' the Tories say is impossible to control. They will show who produces the food, who controls its distribution and sale, and he wordine mass on feed by the working class on end up. Finally the question, 'how can we organize duction for the benefit of the majority?' will be answered.

The capitalist class, represented by the Tory government, always like people to view a 'decent standard of living' as an abstraction. They present it as an isolated category— kind of exchange, handed dowr to the working class for services rendered.

In fact the living standards of today have only been won through bitter class struggle.

The standard of living is a social thing. Embodied in it are all the antagonisms between the working class, which wants to keep the greatest possible proportion of the value it creates in the form of wages, and the capitalist class, which correspondingly seeks to rob workers of as much surplus value as possible in the form of profit.

This struggle is never-ending and only recently have workers won the right to even minimum standards (to say nothing of the millions who still live below the poverty line).

It is indeed a popular misconception that the horrors of starvation and malnutrition were left far behind in the darkest days of the 19th century. This is not the case.

Only the advent of the welfare state after World War II freed the bulk of the working class from the threat of death or deformity through lack of proper food.

Half the nation ill-fed In his famous study of the late 1930s, Sir John (now Lord)

Boyd Orr found that 4.5 million people (10 per cent of the nation and 20 per cent of children) had a diet insufficient to keep them healthy. They all lacked the necessary amounts of proteins, fats, calories, calcium, phosphorus, iron and vitamins A and C to prevent death or serious illness. A further 9 million were f the working class are be inadequate in all but protein ginning to drop. and fat, a further 9 million The offensive rests did not eat enough minerals and vitamins and another million were inadequate in deliberate Tory policy of drivcalcium. ing to levels Adding the totals, Boyd Orr found that over half the nation, Economic Community. Allied and the majority of the working to this is the switch to ValuewerE ill-fed, judged Added Tax from April 1, whicł against even the most mini- will throw the bulk of the tax mum standards.

Another survey by Dr shoulders of the working-class McGonigle showed that the extra expenditure incurred by shopper. workers moving from a slum christen their policy a pric area in Stockton to a modern freeze. But of course ther housing estate contributed directly to an increase in the curbing price rises. death rate from 18.75 to 26.71 per 1,000. People spent less on Even profits will be food so they died more rapidly allowed to increase n greater numbers How close this is to today.

Youth raised on free orange juice and rationed food under rom controls and importer the post-war Labour govern- foods are allowed to rise ment are but one generation freely in price. Since processer from rickets, malnutrition and foods are manufactured from sheer starvation of the 1930s. fresh home-grown food or It is essential that the standard of living is viewed in nerencec in costs canoe re this social-historical context of flected struggle. Only this way can there are no controls on prothe true evil of the Tory attack cessed groceries either. be grasped.

The government is not just mported food and processe attempting snatch few ood can rise in price-this i shillings from the purses, but what the Tories call a 'freeze'. is trying to throw working-class progress into reverse. profits will be allowed to Already, for the first time since increase. Margins can go ul the days of Boyd Orr and i am confident, drawied Rippon, that our food prices will not reach the icGonigle, the living standard best two of the previous five years. In addition the lories pillars — the laws so-called on two have promised to view profit increases to meet 'particular situations' with 'some latitude' laws and the The working class will not enjoy such benefits. If the miners, for example, go on the capitalist European strike for their present wage claim, which is less than the best two increases achieved over the last five years, they will find themselves threatened burden directly onto the with fines or imprisonment under the Phase Two regulations.

Characteristically the Tories The result of this policy has been a dramatic fall in living standards. was, and is, no intention of The most comprehensive guide to food prices is published by "The Grocer' magazine each week.

This shows that since the 'freeze' was imposed in early All fresh foods are exemp November, prices have risen from an index level of 133.72 points to 142.41 points (about 7 per cent) in the week ending February 3. In the final week, price increases were the imported supplies, and since steepest of the whole period, increases in inses sed prices. fresh foods rose 2.28 points and processed foods 1.27 points.

Not only did prices rise In other words, fresh food, during the first 'freeze' months, the increases-comparing the level of one month in 1972 and the level in the same Under Phase Two even month for 1971—were the highest of the whole of 1972.

For example, prices in June the achieved in the last year were 4.3 points 2,00 higher than in June 1971, in October they were 7.4 points higher, in November, after the freeze, 9.5 points higher and in January 11.5 points higher.

The cost of almost every food has rocketed-meat, eggs, fish, vegetables, fruit, coffee, sausages, cooked meats, jams, honey, frozen fish, frozen meat, hamburgers, canned meat, biscuits, pasta-they all escaped the rigours of the 'freeze'.

The kind of price hike suffered by housewives is laid out in February 3 'Grocer'. Compared with February 1972 fresh meat is 41 per cent dearer, fish is 41 per cent dearer, fruit is 18.5 per cent dearer, coffee is 11.6 per cent dearer, with another rise on the way, flour is 10 per cent dearer, processed meats are 10.8 per cent dearer, vegetables 17.5 per cent dearer and eggs 9.6 per cent dearer.

The magazine's final comment on this orgy of rises is: "The outlook for food prices is not favourable. Much depends on government action.' They were referring to the dam of requests for increases now building up at the Ministry of Agriculture. The major manufacturers have got 1,000 claims in following increased raw material costs—the first is expected to be bread, up 1zp a loaf.

Many housewives will remember the promise made by Tory leader Edward Heath— 380€ 'We perf dept rule blat mic driv Rip will high som had Bri wer shif TI wiv Con TI

0406 CARNI 7150 B am confident, dr wied Rippon, that our food prices will not reach the exception Ich occur in some EEC countries'. i weeks later beet had I ped up to EEC Tevels. Above: Italian meat stall.

iccur in some EEC countries À tow mooks later boot in ints and ner. 'ery 3gs, fee, ms, eat, eat, ped Like laid er.

:ent :ent :ent :ent on :ent bles iggs s is nds ases stry ajor ,000 Ised it is 1fp 380€ 48 'We will reduce the rate of price increases at a stroke' The government's subsequent performance has revealed the depths of arrogance and cynicism with which the Tories rule. Behind a battery of blatant lies and publicity gimmicks, they are seeking to drive the working class back into the 1930s.

Another Tory boast, which may yet achieve more notoriety than Heath's election pledge, was made by Geoffrey Rippon, the Tory in charge of Common Market negotiations, to Cardifi housewives last November.

'I am confident, drawled Rippon, 'that our food prices will not reach the exceptionally high levels which occur in some EEC countries.' A few weeks later after beef had leaped up to EEC levels, putting over 20 per cent on British prices, Tory Ministers were asking the working class to eat chicken. 'Prices are high and they will stay high—so shift yourselves and change your diet.' This was basically the message from Joseph Godber, Minister of Agriculture.

This meat scare gave housewives the first taste of the Common Market. Entry into the EEC was the last nail in the coffin of cheap food.

The fulcrum of the Market's food system is the Common Agricultural Policy. This is quite simply a mechanism for keeping food prices far higher to EtC lovels. Above: lial than necessary, to safeguard the farmers' profits, the manufacturers and ultimately the food wholesalers and retailers.

Before February 1 British farmers were subsidized. But at least the revenue was collected via taxes and therefore had progressive character (since under income tax the rich pay more). The subsidy in Europe is paid by an artificially higher price and therefore falls directly onto the shopper. The poorer you are the more you suffer-always the way in the Common Market.

The system works this way. The capitalist authorities of the EEC take the highest proposed price of a food commodity and fix the level there.

The European price of wheat, barley and oats, for example, is equal to the price in Duisberg, where levels are the highest. Prices are geared to production in the most inefficient areas.

The burden will be enormous Meanwhile all cheap imports from outside the BEC are choked off with a common tariff and, if this is not high enough, an extra levy.

British food production is being forced into this system now-already higher bacon and pork prices are forecast (these are the meats Tories advise us to eat instead of beef!).

At present a special levy nas been introduced. This is paid to exporters who sell say highpriced French wheat in the lowpriced British market-the government will make up the loss from the public purse. Gradually the full high-price system will come in and the working class will beat the full burden as prices rise to EEC levels.

And the burden will be enormous. The latest study on the Common Market showed butter 179 per cent dearer in the EEC, cheese 62 per cent and bread 10 per cent. There are, as many • workers who travel abroad have found out to their cost, very few foods cheaper in Europe than in Britain.

The EEC's economic philosophy was revealed in an agreement signed in May 1970 to reduce wheat production. People still wanted more bread, but, in the words of 'socialist' Dr Sicco Mansholt, 'the Ministers recognized that the major exporters had a common responsibility to regulate their production in a manner which would bring supplies into balance with opportunities in the international market [i.e. profit opportunities].' Mansholt continued: "The government should • exercise care in implementing the new or existing programme of support and avoid measures which Food 143MAMA 142141139+ 134133would have the effect of lating production.' It's back, once more, to the 1930s—plough the wheat under, dump the fruit and burn the coffee, but never, never allow profit to fall. It's bad for the market.

Lord Watkinson, the head of the Cadbury Schweppes food empire never said a truer word when he reminded an audience of executives recently: 'The British food industry is in for a very rough and stormy time in 1973. Britain's entry into the Common Market may heighten the waves food is over; the era of cheap A1: improves th ealth of the ric On April Fool's Day, the Tories have one more blow to deal to the working class— Value Added Tax. This again is an EEC invention and, like everything to come out of the Common Market, is specifically designed to improve the wealth of the rich at the expense of the poor. (The tax was introduced by the French government after the Poujade rebellion when the middle class revolted and refused to pay more direct taxes.)

The Tories admit that VAT will put up to 2.5 per cent on prices. All evidence suggests the increase will be much higher. In Denmark prices rose 6.5 per cent in six months as a result of VAT and in Norway 6.25 per cent, despite a price freeze.

VAT is levied throughout the system of production. At each stage of a commodity's journey to the shop the tax will be levied at 10 per cent of the value added to the product. Hence the supplier of goods will be taxed f10 on goods worth £100 he sells the manufacturer. But the price charged to the manufacturer will be £110, allowing the supplier to recover the tax.

The manufacturer then adds £50 value to the raw materials, making the 'price' f160. With 10 per cent VAT he sells the goods to the wholesaler at £176. The wholesaler adds £24 on the 'price' making it £200, this with 10 per cent VAT means he sells it to the retailer at £220. The retailer adds £30 to the goods making their 'price' £250. This, with 10 per cent VAT, means he sells to consumer at £275. Here the buck stops, the consumer cannot pass on the prices he foots the whole £25 tax bill.

The Tories make great play of the fact that food is zerorated'. But this means that it is not levied yet. Food is Prices since the 'Freeze' NOV 18 NOV 25 DEC 2 DEC 9 DEC 16 DEC :

November up: bacon, ham, eggs and tres fri fish, meat December up: sausa eggs, fresh fish, fresh fruit, tresh meat sausages, pies, cooked meats, processed meats, vegetables.

January up: treaten tel, processed a was sausages Figures from The Grocer' Monday February highly likely to be taxed as we move up from the 10 per cent VAT rate to the higher EEC levels.

The tax is highly regressive since it falls equally on the rich and the poor. It is part of the Tory plan to shift the tax burden away from the wealthy (they have already slashed surtax and corporation tax on firms) and make the working class foot the bill for state expenditure.

It has the added bonus of allowing the Chancellor to increase taxes when he wants. No budget is necessary. It is possible therefore the Tories to recover wage increases by bumping up the VAT rate.

In addition VAT will have an important indirect effect on prices. All businessmen must calculate their turnovers in the various items carrying VAT if they are not to fall foul of the Inland Revenue. This massive administrative task is beyond the resources of many small shopkeepers. VAT will them out of business. But it is also a headache for the multiples.

One Irish retailer with a stati of 600 in 15 supermarkets has calculated that the overtime caused by VAT calculations costs him as much as £2,000 a week. This, he says, will be passed on to the shopper. SPA, the association of independent grocers, has estimated that even the prices of zero-rated food goods will increase at least by 1.5 per cent as a result of VAT.

VAT, the Common Market and the general Tory policy of higher prices all add up to a massive drop in living standards for the working class. This will happen during 1973 if the Tories are not removed from office.

It is not merely a question of paying more, but the rapid erosion of a most fundamental right.

It would be extremely foolish to believe that as the economic crisis gets worse the same conditions of widespread poverty and misery, like those experienced by most of the working class in the 1930s, will not reappear.

Already there are reports of the poorest and most vulnerable sections of the working class suffering a steep decline in living standards-the old, the unemployed, the homeless and the children from broken homes have little defence against this offensive. Now it is the turn of the wage-earner to suffer.

CONTINUED

PAGE & Workers Prazs. Mondar Fahruaru 10 1079 Left: Alfredo Stroessner, wi o has been in power in Paraguay since the military coup in 1954. Stroessner's rivals have either been jailed or expelled.

under conditions even the bourgeois was denied the right of assembly or any Press or radio coverage and in which enrolColorado 0I 19/5 8 per cent the for all public from to 1962. During this the Liberal élite became worried at revolutionary supported them.

suaded Stroessner to create a façade aemocracy 1963 elections, in divert this revolutionary feeling back behind a safe, bour. geois 'opposition'.

A Liberal Party group, led was persuaded to take part in the elections and was given 20 out of a total of 60 parliamentary seats, plus high salaries and tax-free imported cars.

By 1968 the main body of the Liberal Party had seen the advantages of such democracy and participated in the election on these terms.

There is also the Febrerista Party in Paraguay. This arose out of social discontent following the Chaco War of the 1930s.

Its ideological of the West German Social which The Christian Democrat and its were expelled from in December 1969.

Democrats get their middle class.

of dissidents from rerista, Liberal and Christian Democrat Parties joined together There is no