"It is a fairly well-established generalization in economic theory that
during a period of a long rise in prices, money wages lag behind the
prices of commodities, both retail and wholesale, so that real wages
during such periods show a tendency to decline."
-- Simon Kuznets (1930). _Secular Movements in Production and Prices_,
pp. 207-8
"If prices rise, the benefit accrues immediately to the entrepreneurial
class. In time, however, competition among entrepreneurs compels them to
bid up the prices paid for labor, land and capital until the surplus
profits are absorbed."
-- Alvin Hansen (1925), 'Factors Affecting the Trend of Real Wages,'
American Economic Review, [cited by Kuznets op. cit. p. 208].
Tom Walker
