Declining Wages

There is a maxim often espoused by apologists of Capitalism - that a rising tide lifts all boats , meaning that a bountiful capitalism will benefit all sectors of society , not just the capitalist class .

But where is the proof of the pudding.

Profits at British companies are growing at their fastest pace in nearly 13 years while wages of ordinary workers are rising at their slowest pace since 2002, official data showed today.

Office for National Statistics said profits increased by 16.2% in the second quarter of the year compared with a year earlier. That was the best figure since the final quarter of 1994, the profit rise was widespread across different types of company.

Meantime

Wages rose by a meagre 3.6%, the worst pace of growth since the first quarter of 2002.

And inflation - rose to 3.8%, the highest in more than a decade .

So in real terms we are 0.2% worse off

Darren Winder, chief economist at stockbrokers Cazenove said that the cash position and balance sheet of British business was stronger than ever.

"But with household debt now higher than annual GDP, workers may be showing more flexibility over pay rises because they need to keep their job and pay the mortgage."