By H. W. Arndt
First released in 1963. Routledge is an imprint of Taylor & Francis, an informa corporation.
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Additional resources for Economic Lessons of the 1930s
A, But the faet remains that the gains of the workers from increased wage-rates were largely wiped out by rising priées and that the policy of inereasing wage-rates and costs on balance retarded the reduction of unemployment, Moreover, while the social effects of some of its provisions, such as those for T H I U N Ï T Ï S S T A T U ? INTIBNAÏ* fQhlQY 1 1 A. F, ef L. estímales, quoted ibid, 1 . Straehey, op, @it„ p, ÎQQ, ' Based OR ftgures quoted by Radiée and Hugh-Jones from the labßur Review §1 the Sureau ef Labour Statistics, 1 1 Monthly 4 6 E C O N O M I C LESSONS OF T H E N I N E T E E N - T H I R T I E S the abolition of child labour and the improvement of working conditions, were admirable, the provisions for fixed prices and production quotas were used by the large business interests in control to strengthen their monopoly position on the lines of the German 'carter and increased the rigidity of the structure of the economic system.
Agriculture in 1933 was the most depressed section of the American economy. The catastrophic and disproportionate fall of agricultural prices, which had begun even before the 1929 crisis and had been accelerated during the years of the depression by a constantly contracting internal and external demand for agricultural products and constantly expanding agricultural production, had not only greatly reduced the money income of the American farmers but had also led to a still further reduction of their share of the national income.
At the worst, there would still have been time to allow the dollar to depreciate if and when actual pressure on the American balance of payments and currency made such a step appear desirable. The beneficial effects of devaluation on domestic employment are even more dubious. It is undoubtedly true that a successful internal recovery policy would have increased American imports, while rising American prices might have made it more difficult for American exports to compete in international markets.