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Additional resources for Employment, Income Distribution and Development Strategy: Problems of the Developing Countries: Essays in honour of H. W. Singer

Example text

These changes of direction may accelerate or decelerate the growth rate; some do the one and so me do the other. If such a change of direction decelerates growth, while improving distribution, an additional element will enter into the trade-off, if the thing that the government is doing is thought to have merit on its own. g. belongs to some particularly impoverished tribe) and also because this meets some other national objective (pride in not depending on foreign sources; preparation for defence).

8 Av. hor. ditf. 6 5 6 7 Av. vert. ditf. 3 Earnings after Income Tax for Groups of Different Educational (I{) and Occupational (h) Classes in the State of New York, 1959, $100 per annum. 5 92 Denomination Labourers Service workers Operatives Cler. , propriet. with 30 per cent for earnings after tax. The corresponding figures for California are 28 and 29; those for South Carolina 24 and 25. Finally, a similar estimation was made for asampleof2241 Swedish [8] income-earners. Here we have figures [3] for earnings befote and after tax as weil as for income after complete redistribution (including subsidies received on public services).

All schools of economics have tried their hand at this, but their favourite fore cast - the falling rate of profithas not yet come to pass. We hazard only the following three propositions: 1. The share of profits relatively to wages will rise in the early stages of development. 36 Employment, Income Distribution and Development Strategy 2. The owners of the land on which towns are sited will reap a harvest. 3. Income of people in the middle range (say the tenth to the sixtieth percentiles) will rise faster than total national income.

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