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 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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