Perth Amboy evening news., 1923-03-10


The question is often asked what
is the distribution of our national
income.
This probitm of current econom-
les is answered by Rorty, who states
that the total of all economics is
distributed between labor, land
rents, interest and profits.
They r. approximately IS per
cent to labor, 3 per cent to land
rents, 16 per cent to interest and s
percent to profits in excess of a
normal interest rate.
If all high salaried officials were
reduced to $1,000 per year and an
increase given to all the lower paid
workers, that includes clerical work
ers, ETC., it would only amount to 2
per cent.
Money Wages VS.. Real Wages
PRODUCTION, Not Wages, Regulates
the Standard of Living.)
The standard of living does not
depend at all upon the level of
wages, but upon tho productive eff
| cheney Of labor and industry. Wage
earners do not in the final analysis
sell their services to the employer,
| but really to the consuming public.
The W-age-earner is himself a con-
sumner. In effect he sells his serv-
ices OI lie SOOuS ~ AL1IloI11s Al41
! more wages he receives, the more
money he will have to pay as a con-
sumner for the things he produces
and buys.
Wages are the cornerstone of all
| rrices, because wages do not come
| out of capital; they are paid out of
| production-out of the money re-
| turns from the sales of production.
Relatively little capital is in the
| form OF money. The moment a
| Wage-earner buys a home, a piano
and furniture, or an automobile, or
makes any substantial investment or
such a character, he at once be-
J comes q capitalist in the accepted
| sense of the word.
Wages are OF two klndS-money
wages and real wages. Money
wages are what tile yorker actually
receives in coin or currency for his
services. Real wages are repre-
sented in the product of others-in
merchandise, commodities a n d
things which the worker buys with
his money wages. n value and
quantity of the workers real wages
depends upon the per capita pro-
duction of all labor.
Money wages only represent a
claim check for a certain portion or
the real wages or tOtal prOuuCt1oH VI
all workers in Merchandise and
commodities. The portion of real
wages which the worker receives in
exchange for his money wages is
determined by the supply of mer-
chandise in relation to the ~purchas-
ing power of money wages. If the
normal production of labor has been
| cut in half, then the purchasing
power of the workers dollar in
| money wages is reduced to half OF
its former value, because there is
only hall as much rea wages n pro-
duction to be secured in exchange
for the full amount OF money wages.
Money wages Represent dollars,
and dollars ale only counters, which
are used for convenience a. a med
ium of exchanging the product of
one worker for that of another
worker. Dollars really have no
| value themselves, except as they
can be exchanged for real wages in
| finished products. Money wages or
counters cannot be eaten; they can
| not be worn, nor burned in the stove
| or furnace TO heat the house. But
real wages can be 50 used, for they
are represented in merchandise and
commodities such as food, clothing,
fuel. etc
To increase one wages by add
ing more dollars or counters doe