Essentials of economic theory, as applied to modern problems of industry and public policy . g trend. If, how-ever, we establish the natural standard of wagesby cutting off such progress and letting the influxof labor continue, the test would give a standardlower than the present one,—a false, as well as adiscouraging result. The resultant of all the changeswe are about to study will probably give to the futurepay of labor in America a rising trend. How Industries adapt themselves to UnequalDensity of Population. — In view of this fact it isnecessary to recognize a proximate rather than anulti
Essentials of economic theory, as applied to modern problems of industry and public policy . g trend. If, how-ever, we establish the natural standard of wagesby cutting off such progress and letting the influxof labor continue, the test would give a standardlower than the present one,—a false, as well as adiscouraging result. The resultant of all the changeswe are about to study will probably give to the futurepay of labor in America a rising trend. How Industries adapt themselves to UnequalDensity of Population. — In view of this fact it isnecessary to recognize a proximate rather than anultimate static state as that toward which the adjust-ments now going on are immediately tending. Wewill treat the unequal density of population withinour economic society as something which will last, notforever, but so long that it will not be removed orappreciably affected within the period required forthe other adjustments that we are studying. Givena population that is dense in Belgium and sparse inTexas, and competition will cause the industries to 240 ESSENTIALS OF ECONOMIC THEORY. take on the types which they would have and retainif that difference in density were destined to bepermanent. The type toward which the economichfe of both regions is tending is thus a proximaterather than an ultimate one. Each region will, inthe near future, be of the type toward which influ-ences which do not involve an equalization of popu-lation are impelling We get the true direc- tion of the change thatis going on in the earn-ing power of labor andin the shape of the in-dustrial organism inboth regions by recog-nizing the fact that the differences in the density oftheir populations will continue through the periodwhich we are considering. If the line BC represents the productive power ofa unit of labor in a region which is sparsely peopled,and the line BC represents the productive power ofa unit of labor in a densely peopled region, we mayassume that AC and AC, which are equal to ea
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