[54] See Laughlin, "Money and Prices," Chart III, page 86.
[55] See W. C. Mitchell, "Business Cycles," page 58.
[56] W. T. Layton, "Introduction to the Study of Prices," Appendix C, page 128.
[57] "The Carpenters' and Joiners' Case," Vol. I, S. Australian Ind. reports, page 174.
CHAPTER VI—WAGES AND PRICE MOVEMENTS
(Continued)
Section 1. The problems of wage settlement arising out of upward price movements two in number: (a) Should wages be increased during such periods? (b) If so, on what basis should increases be arranged? The doctrine of the maintenance of the standard of life analyzed.—Section 2. An alternative method of adjustment proposed, based on a new index number.—Section 3. Periods of falling prices also present two problems of wage settlement, similar in essentials to those presented by upward movement. These problems discussed.
1.—We can now proceed to the consideration of the problems of wage settlement which arise out of price movements. First, we will deal with the problems presented by upward price movements. Then subsequently we shall take those questions presented by price movements downward.
The problems presented by upward price movements are two in number. Firstly, is there any reason why wages should be increased during a period of advancing prices? Secondly, if there is reason, on what basis should the increases be arranged?