Money wage and product wage relationships.

The proposition that reductions in money wages will increase employment customarily has been debated in terms of "real wages"--the relation of wages to consumer goods prices. Recently, the suggestion has been made, however, that the proper relation to consider is that between wages and product prices in individual industries--the "product wage." This discussion examines the question of whether reductions in money wages correlate with changes in wholesale prices so as to stimulate business activity and employment. (Author's abstract courtesy EBSCO.)