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It is far not the complete list of all possible consequences generated Wages reduction in our difficult real world. But nevertheless I I think that the aforesaid covers those cases, which usually most Are important.
Therefore we will be limited to consideration of the closed system and we will assume that
New distribution of real earnings if will affect somehow on
Propensity of company to an expenditure, only to the worst. In it
Case we should build all our hopes on favorable for
Employment results from reduction of monetary wages mainly
On an increase of investment, an event or thanks to increase of the limiting
Efficiency of capital (according to item 4), or thanks to norm decrease
Percent (according to item 5). We will consider both these possibilities a little
More in detail.
Favorable for increase of a marginal efficiency of the capital conditions
Exists when monetary wages as believe, has reached
Already a limit of the falling so that it is expected that its further changes
Will be already towards increase. The most adverse conditions form
When the monetary wages slowly creep downwards and each it
Reduction reduces belief that it will not fall even more low. Time we already
We enter the period of easing of effective demand, the sudden sharp
Reduction of monetary wages to such low level that nobody
Trusts in possibility of its preservation for vaguely long time, it has appeared
Most favourable for strengthening of effective demand. But it could
Practically it is not applicable almost there where the system of the free acts
Agreements on wages. On the other hand, if wages
Has been rigidly fixed also any a little essential changes in
It would be considered impossible it would be better, than such position,
At which depressions would be accompanied by the tendency to gradual decrease
Monetary wages when each increase of a rate of unemployment, we will tell
On 1 %, it would be regarded as a signal to the further moderate reduction
Wages. For example, the assumption that wages
Will decrease, we will tell on 2 %, within the next year, it would appear on the
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