chapter  5
12 Pages

SURPLUS INCOME THE CAUSE OF FLUCTUATIONS

IF there are any to whom I .appear to be urging on behalf of labour a I heads I win, tails you lose' policy, by insisting tllat a removal of the wage-lag is only good in a rising and not in a falling market, my reply is that I am not concerned with the wage-lag, as such, but only with its bearing upon the proportion between wages and profits. If I am right in holding that th~ under-consumption which visibly cramps the us~ of the full powers of industry is due in large part to the excessive share of tIle product which goes normally to I capital' and the defective share which goei to labour, the removal of the wage-lag is only advantageous in so far as it reduces the aggregate amount of this maldistribution. It is consistent with this purpose to advocate the removal of the wage-lag only when that lag diminishes the share of labour.