Spending our money

In 1953 the British Government published a book full of figures, tables and diagrams. These show how the people of Britain spent their incomes in the years 1946 to 1952. They show how much of their incomes was spent on such necessities as food and clothing, fuel and light, rent and water, and how much money was spent on travel, entertainments, to­bacco and other less neces­sary things. They tell us, too, how much of the total was taken by the Govern­ment in direct taxation and how much of it was saved.

The bottom diagram on page 8 shows in another way how income was spent during those seven years. Out of every twenty shillings, seventeen went on personal expenditure, or on the goodsand services in the list in the top diagram. Two shillings was taken by the Government in direct taxation. Savings were seven-pence, and the rest, fivepence, went for National Insurance contributions.

Direct taxes, for example the tax on income, took two shillings out of every pound. But the Government took a large sum in indirect taxation, too. In 1952 people in Britain spent 287, 000, 000 pounds on wines and spirits and nearly twice as much, 563, 000, 000, on beer. As the diagram shows, the sum spent on tobacco is nearly as large as that spent on alcohol. The taxes on alcohol and tobacco are heavy, so the larger half of the total expenditure on alcohol and tobacco, 1, 670, 000, 000 pounds, for 1952, went to the Government in axes. There is also the entertainment tax, for when the Londoner pays to go to a theatre, a cinema, a concert, or an opera, he pays tax as well as the price of his seat. On many goods there is a purchase tax. The cost of a radio set, a radiogram or television set is high because of the tax the purchaser has to pay. So is the cost of the records he buys to play on his radiogram. On these, too, here is a heavy purchase tax.

Out of every pound, seventeen shillings is personal expenditure. Of this sum a little over seven shillings is spent on food. The house-wife takes about one-third other husband's earnings to the grocer, the baker and the butcher. About 3s. 6d. out of every pound is spent on alcoholic drink and tobacco. This, of course, is an average figure; some families spend more and others spend less, and there are many non-smokers. If people in Britain drank and smoked less, the Government would at once have to raise the other taxes. Income tax would certainly be raised.

Seven pence out of every pound, a little less than 3%, seems a small figure for savings, but the total is quite large. The money contributed for National Insurance is also a form of saving, for those who pay these contributions receive the money back if they become ill or unemployed, or if they are injured in an accident while they are working.

The black part of the oblong opposite domestic service is very small. Only the rich can afford to employ domestic servants. More is spent on private motoring than on domestic service. Many middle-class people in Britain who can afford a car cannot afford a servant.

Travel includes journeys to and from work as well as travel for pleasure or for visits to relatives and friends. Workers in large cities spend a good deal of money on bus, tram and train fares. Almost everyone in Britain is now able to enjoy a summer holiday away from home. Workers in many industries have holidays with pay, and are able to take their families to the country or the sea, and this is good for those who work in mines or factories, or spend most of their lives in the dull, smoky and dirty manufacturing and industrial parts of Britain.

Household goods are such things as furniture for the home, and also things needed for cooking and meals, the kettles, pots, pans and cigarettes and cigars), are much greater than the amounts spent on books, papers and magazines.

The bottom diagram on page 8 shows in another way how income was spent during those seven years. Out of every twenty shillings, seventeen went on personal expenditure, or on the goodsand services in the list in the top diagram. Two shillings was taken by the Government in direct taxation. Savings were seven-pence, and the rest, fivepence, went for National Insurance contributions.

Direct taxes, for example the tax on income, took two shillings out of every pound. But the Government took a large sum in indirect taxation, too. In 1952 people in Britain spent 287, 000, 000 pounds on wines and spirits and nearly twice as much, 563, 000, 000, on beer. As the diagram shows, the sum spent on tobacco is nearly as large as that spent on alcohol. The taxes on alcohol and tobacco are heavy, so the larger half of the total expenditure on alcohol and tobacco, 1, 670, 000, 000 pounds, for 1952, went to the Government in taxes. There is also the entertainment tax, for when the Londoner pays to go to a theatre, a cinema, a concert, or an opera, he pays tax as well as the price of his seat. On many goods there is a purchase tax. The cost of a radio set, a radiogram or television set is high because of the tax the purchaser has to pay. So is the cost of the records he buys to play on his radiogram. On these, too, there is a heavy purchase tax.

Out of every pound, seventeen shillings is personal expenditure. Of this sum a little over seven shillings is spent on food. The house-wife takes about one-third other husband's earnings to the grocer, the baker and the butcher. About 3s. 6d. out of every pound is spent on alcoholic drink and tobacco. This, of course, is an average figure; some families spend more and others spend less, and there are many non-smokers. If people in Britain drank and smoked less, the Government would at once have to raise the other taxes. Income tax would certainly be raised.

We must include today some things which were either unknown fifty years ago or were found only in the homes of the rich. Refrigerators and washing-machines are common in British homes today. They are usually bought by hire-purchase, a system of sellings by which the buyer does not pay the whole price at once. Instead, payments are made weekly or monthly over a year or even longer.

Many British families have to make several weekly payments of this; kind; they are perhaps paying for a refrigerator, a sewing-machine, and a bicycle for one of the children.

The sum spent on books and magazines seems small. Most families take at least one daily newspaper and a Sunday paper. They may take several weekly magazines, usually including the Radio Times. This gives them the weekly programmes of the B.B.C. The small sum spent on books does not mean that people do very little reading. Millions of cheap, paper-backed books are bought every month. There are good public libraries everywhere from which books may be borrowed. Over one million books are taken; out from these libraries every week-day. In some homes, however, there is less serious reading now than there was fifty years ago. Many people prefer to listen to the radio, or look at films or television.

Ответьте на вопросы к тексту:

1. How did the British spend their incomes in 1946-1952?

2. How much did they spend on alcohol?

3. What is National Insurance?

4. What is hire-purchase?

5. Do you think that people read little?