unemployment. Healey's plan must be rejected along with every other form of wage restraint under capitalism.
Instead of acceptance of wage cuts - - and in addition to the measures on currency discussed on page three - what is required is a clear econonic strategy which links the most immediate economic measures to the socialist goal of full nationalisation and planning of the There are at least seven vital steps for this:
1. Wage increases An immediate increase in wages pensions and unemployment pay: Far from imposing wage cuts, what is needed at present is to increase the demand for goods through pumping money into the pockets of the working class. This can be done through tax cuts or much better through wage rises. imposition of equal pay, and a national minimum income level for wages, pensions and unemployment pay. will step up the demand for goods throughout the economy and be a first step in pulling out of the slump.
2. Public works An emergency programme of public works: While wage increases are one step in Sliding scale of wages and social expenditure: A substantial increase in wages and in public expenditure will bring about an immediate rise in working class living standards. This is not only desirable in itself, but is absolutely necessary to create the working class enthusiasm and drive needed to break through all the obstacles the capitalists will put in the way of socialist measures.
This increased living standard will be easily maintained and improved as the increase in investment described below works itself through the economy. Furthermore, while getting control of this investment should ensure that inflation is kept down - and indeed a planned economy is the vital step to smashing inflation - nevertheless there is some short term pussibility of price rises until the basic econoinic measures begin to have their full effect. It is vital, both economically and politically, that the working class and its allies have their living standards protected against any inflation generated in this period.
Economically this is crucial so that inflation does not erode the purchasing power of working people, and therefore wipe out the reflationary effect of the wage increases. Politically it is vital so that the workers do not see their living standards falling, and thus lose their enthusiasm for these policies. A failure to protect wages against inflation was one of the fatal weaknesses which beset the Allende