Why Wages Differ
Why Wages Rise
F. A. HARPER
THE FOUNDATION FOR ECONOMIC EDUCATION, INC.
IRVINGTON-ON-HUDSON, N E W YORK 1957
Copyright 1957 by F. A. HARPER Permission to reproduce from this book, without special request, is hereby granted by both the author and publisher. Information about uses will be appreciated. Library of Congress Catalogue Card No.: 57-6929.
PRINTED IN U.S.A.
Contents
Page
INTRODUCTION 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. LABOR UNIONS PRODUCTIVITY DIVIDING T H E P I E TOOLS T O HARNESS ENERGY DOING WHAT YOU CAN D O BEST T H E LUBRICANT FOR EXCHANGE CONTRACTING F O R PROGRESS . . . . . . . . . . . . . 5 9 14 19 28 35 43 53 63 72 84 95 . . . 107 120
THE COST OFBEING GOVERNED .
LOSING PAY THROUGH FRINGE BENEFITS . LEISURE AND THE B E T T E R L I F E . PRICING AN HOUR OF WORK RIDING THE WAVES O F BUSINESS . . .
INDEX
Charts and Tables
WAGES AND UNION MEMBERSHIP CHANGES IN PRODUCTIVITY AND WAGE RATES ENERGY OUTPUT REAL AND UNREAL WAGE RATES 11 16 34 57
WAGE TRENDS: BUYING POWER BEFORE AND AFTER TAXES 68 LEISURE AND BETTER LIVING EFFECTS OF PRICE FREEDOM WAGE LEVEL AND UNEMPLOYMENT UNEMPLOYMENT; SHARES OF NATIONAL INCOME INSTABILITY OF BUSINESS 90 97 104 110 115
Introduction are of prime importance in any advanced economy such as ours. They affect us all far more than seems evidenced in our concern about them. Everyone buys wages, in a sense, with every purchase he makes. And three-fourths of all incomes in the United States represent pay for work done in the employ of another. So nearly every one of us is on both sides of the wage exchange, in one way or another. We all know in a general way that wages have been rising for a long time in this country, but there is evidence aplenty that the economic principles which apply to wage problems are not well understood. Probably they are no better understood now than in the early thirties when measures adopted to combat the depression proved to be such colossal failures. Fearing
F. A. HARPER
THE FOUNDATION FOR ECONOMIC EDUCATION, INC.
IRVINGTON-ON-HUDSON, N E W YORK 1957
Copyright 1957 by F. A. HARPER Permission to reproduce from this book, without special request, is hereby granted by both the author and publisher. Information about uses will be appreciated. Library of Congress Catalogue Card No.: 57-6929.
PRINTED IN U.S.A.
Contents
Page
INTRODUCTION 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. LABOR UNIONS PRODUCTIVITY DIVIDING T H E P I E TOOLS T O HARNESS ENERGY DOING WHAT YOU CAN D O BEST T H E LUBRICANT FOR EXCHANGE CONTRACTING F O R PROGRESS . . . . . . . . . . . . . 5 9 14 19 28 35 43 53 63 72 84 95 . . . 107 120
THE COST OFBEING GOVERNED .
LOSING PAY THROUGH FRINGE BENEFITS . LEISURE AND THE B E T T E R L I F E . PRICING AN HOUR OF WORK RIDING THE WAVES O F BUSINESS . . .
INDEX
Charts and Tables
WAGES AND UNION MEMBERSHIP CHANGES IN PRODUCTIVITY AND WAGE RATES ENERGY OUTPUT REAL AND UNREAL WAGE RATES 11 16 34 57
WAGE TRENDS: BUYING POWER BEFORE AND AFTER TAXES 68 LEISURE AND BETTER LIVING EFFECTS OF PRICE FREEDOM WAGE LEVEL AND UNEMPLOYMENT UNEMPLOYMENT; SHARES OF NATIONAL INCOME INSTABILITY OF BUSINESS 90 97 104 110 115
Introduction are of prime importance in any advanced economy such as ours. They affect us all far more than seems evidenced in our concern about them. Everyone buys wages, in a sense, with every purchase he makes. And three-fourths of all incomes in the United States represent pay for work done in the employ of another. So nearly every one of us is on both sides of the wage exchange, in one way or another. We all know in a general way that wages have been rising for a long time in this country, but there is evidence aplenty that the economic principles which apply to wage problems are not well understood. Probably they are no better understood now than in the early thirties when measures adopted to combat the depression proved to be such colossal failures. Fearing