ABSTRACT
The allocation of limited quantities of imported raw materials to their users results, of course, in an insufficient supply of the corresponding goods, and thus in a price increase of the latter. Consequently import restrictions have much the same effect as the emergence of cartels that would limit production in industries manufacturing imported raw materials. This is why in the course
of an upswing accompanied by i~port restrictions. a considerable rise in prices in relation to wages would take place as a result of the increase in prices of goods produced from imported raw materials. It may thus happen also that despite the higher production the workers' real income does not increase at all, because the effect of higher employment on the purchasing power of the working class is offset by a fall in real wages. Therefore in the course of such a lopsided boom the consumption of the broad masses of the population may show no increase.
