CONSUMER DEMAND FOR APPLES 



60 



Influence of Wag^es 



Any consideration of factors affecting consumption must obviously in- 

 clude the question of wages, from which so large a part of our population 

 derives its income. Wages are classed as the actual money wages re- 

 ceived, and "real wages", which refers to the purchasing power of the 

 money wage. It is evident that "real" wages are of more importance than 

 are money wages, since "real" wages determine the volume and variety 

 of goods the worker may obtain with liis money. A comparative study of 

 the index of all industrial wages in the United States with the index of 

 wholesale prices of Baldwin apples on the Boston market shows practic- 

 ally no correlation between the two. It is evident that the money wage 

 does not determine the demand for Baldwin apples, at least. Baldwin 

 prices are used because they are to be had for a longer period than any 

 other variety, and because Baldwins have been popular longer than any 

 other variety. (Chart IV) 



A similar comparison of the Baldwin prices and real wages in manu- 

 facturing industries in Massachusetts reveals little beyond the fact that 

 the trend of the prices follows in a general way the line of real wages 

 during most of the period. The last few years, however, show no cor- 

 relation whatever. (Chart V) Nor is the relation between per capita 

 consumption of apples and real wages more definite than that between 



Chart V. Index of Baldwin Prices at Boston and Index of Real Wages in 



Manufacturing Industries of Massachusetts, 1889-90 to 1923-24. 



1890-99=100 



1924-25 1927-26 



The statistics of real wages here used were prepared by Professor Paul H. Douglass 

 of the University of Chicago. Although these are not available to date, it is doubtful 

 if any closer correlation between the two Lines would be shown in the later years than 

 is evident to 1923. 



