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Percent Icon from Large Commerce Icons
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Under the scheduled prices it will supply sales of all production to company such
The bond yield from which it will save up more than will be made by the sum
Current investments businessmen will incur the loss equal to this rupture.
It will occur absolutely irrespective of level of monetary wages. In
The best case the disappointment of businessmen can be delayed only on that
Time during which rupture will be filled in with their own
The investments intended for increase of a working capital.
So, reduction of monetary wages can lead
To long increase in employment, precisely influencing or on
Propensity of company as a whole to consumption, or on the schedule of the limiting
Efficiency of capital, or on norm of percent. There is no other method
To analyse effect of reduction of monetary wages, besides
Considerations of possible consequences of this reduction for three mentioned
Factors. Possibly, most important of these consequences in practice are that:
1. Reduction of monetary wages will lower the prices a little. Therefore
It will cause real earnings redistribution () from hired workers to
To other factors of the production which payment is included into the limiting primary
Production costs and which compensation has not decreased, and () from
Businessmen to the investor by whom the defined has been guaranteed
The fixed money income.
What influence of this redistribution on propensity will be to
To company consumption as a whole? Moving of the income of hired workers to
To other factors of production, possibly, will reduce propensity of company to
To consumption. Effect of moving of the income of businessmen to the investor less
It is clear. However if investors represent as a whole richer layer
The companies which standard of living is least flexible, then effect of the similar
Income movings also it will be adverse. It will appear what final
Result, considering all these reasons, it is possible to guess only. Probably,
It will be faster adverse, than favorable.
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