476 PROCEEDINGS OP SECTION G. 



by its influence in increasing the demand for products, it would 

 benefit, and have the effect of raising still further, the standard 

 of living generally. But it must be borne in mind that, if this 

 mere raising of the nominal wage be too widely extended, it would 

 be less advantageous, even to those whom it included, because, 

 as consumers of portion of their own products, their advantages 

 would be reduced considerably, and it would be obtained by a 

 proportionate decrease of the purchasing power of every other 

 class in the community who were obliged to purchase the products, 

 so enhanced in price, of the favoured industries who may have 

 succeeded in having their nominal wages so raised. 



It is the consumers of products or services who would ultimately 

 lose by the advantages gained by tlie industries whose nominal 

 wages were so raised, and not the employers, who, directly were 

 obliged to advance the higher nominal rate of wages. 



It is only under such restricted conditions where the enforced 

 increase of nominal wages — whether by Wages Boards or by 

 strikes — could possibly benefit any industry. All arbitrary action 

 o*" this nature would, of necessity, fail to raise real wages, or 

 purchasing power, if the nominal wages of every class were raised 

 by the same percentage of increase, as has already been explained. 



Without the aid of some knowledge of the composition, num- 

 bers, productive powers, and relative standards of living of some 

 typical community, it is difiicult to demonstrate, in a concrete 

 form, the truth of the arguments employed in relation to the 

 probable effects of any industi'y. The following tabular illustra- 

 tions, based upon Tasmanian experience, enables me to show 

 approximately the following effects, viz. : — 



(A) Tabular illustration of a typical industrial organiza- 



tion prior to any assumed arbitrary alteration of 

 nominal wages. 



(B) Tabular illustration showing approximately the de- 



crease or increase of the purchasing power of the 

 different industrial classes under the assumption that 

 nominal rates of wages have been increased by 12^ 

 per cent., but restricted in its application to the 

 lowest class (1). 



(C) Similar illustration to (B), restricting application of 



nominal increase of 12^ per cent, to nominal wages 

 to classes (1) and (2). 



(D) Similar illustration to (B), but without any restric- 



tions in its application, i.e., it shows the effect upon 

 the purchasing power of all classes and auxiliary 

 agencies, on the assumption that the 12^ per cent. 

 increase, to nominal wages, is extended to all classes 

 and producing agencies. 



(E) Further tabular illustration on the assumption that 



the total existing reward for productive labour ser- 

 vices were originally distributed on the basis of 



