ABSTRACT
The intelligent radical will realise that we have now reached the crucial question. Can wages and salaries be made sufficiently responsive to supply-demand conditions? Let us go back to our starting point. Suppose that it were decided that the financial authorities should so control the level of total monetary expenditures as to stabilise the level of prices or the growth of money incomes. The consequential restraint of demand for the products of industry would lead to unemployment of labour if there were no corresponding restraint to the demand for increased wages. But if this restraint in the demand for labour did lead to a sufficiently responsive restraint in demands for higher money wage rates, then no unemployment need result; and at the same time there would be a continuing rise in real wage rates at as high a rate as increased productivity made possible.
