PROCEEDINGS OF SECTION G. 483 



" strikes," unless accompanied by an increased effectiveness oF pro- 

 ductive agencies, and an increase in the production of the volume 

 of " consumable wealth," cannot raise " the purchasing power " of 

 all wage-earners. 



In other words, it may be possible to regulate and alter the dis- 

 tribution of the existing aggregate wealth of the consumable neces- 

 saries of life, but so long as this aggregate wealth fails to be in- 

 crease(i, per capita, per year, arbitrary regulations or " strikes " 

 cannot increase the real wages, or purchasing power of a day's 

 labour of all wage-earners. In a word, such arbitrary action can- 

 not divide more than what has actually been created or produced, 

 although the nominal rates of wages and nominal prices of com- 

 modities may both be raised to any extent without real benefit to 

 any one. 



To secure a general rise of nominal wages in all branches of 

 labour would further have the immediate effect of lowering once 

 more the real wages of all those who had previously effected for 

 themselves an advantage by means of successful combination. 



This may seem hard to believe by many who have not taken 

 the trouble to discern the fundamental distinction which exists 

 between real wages — which alone, if raised, can improve the work- 

 man's condition — and nominal wages, which, if raised ever so high 

 in all branches of labour, leaves the workman just in the same con- 

 dition as at the beginning. It is the failure to recognise the essen- 

 tial difference between real and nominal wages that renders futile 

 the schemes of many worthy idealists, which have for their object 

 the laudable design to improve the condition, and " the standard 

 of Hving " of the people generally. 



Q2 



