Distribution and Growth

Steindl, Josef

Bibliographic data

Works

Document type:: Works

Collection:: Josef Steindl Collection

Title:: Distribution and Growth

Author:: Steindl, Josef

Scope:: Typoskript, 19 Blätter; mit handschrifltichen Anmerkungen und Ergänzungen sowie 1 Notizblatt mit handschriftlichem Text, geheftet.

Year of publication:: ohne Datum

Language:: English

Note:: Notizblatt mit dem Titel "Include in the lecture on distribution".

Topic:: Saving and distribution

JEL Classification:: O11 [Macroeconomic Analyses of Economic Development]

Shelfmark:: S/M.71.4

DOI:: https://doi.org/10.48671/nls.js.AC14446258

Chapter

Document type:: Chapter

Title:: Distribution and Growth.

9 extraordinary profits, by innovation for example, the workers of this firm pushed forward with demands for a share in the extra profit. These demands were usually successful in view of the scarcity of labour and of the interest of management in a satisfied and hence permanent and stable work force. This process of piece meal advance of real wages is called wage drift, in contrast to the centralised collective agreements. The wage drift may (will) cause some inflation, in so far as workers in other (protected) branches manage to draw level and cause a shift of their wage increase to the prices. However, the degree of inflation under full employment, as seen from present standards, was modest, and there were no signs of profit inflation. What prevented a more or less permanently booming economy from slipping into profit inflation? In any investment (or export) induced boom there is a kind of automatic control (quite apart from the safety valve of the foreign balance) which restrains the boom once it approaches the ceiling of available resources. Bottlenecks make it impossible for the real investment to increase above a certain volume, and via the multiplier the rest of the economy is restrained too. This is the basic reason why the boom does not get out of hand. The growth rate is bounded by the saving at full utilization and the productivity increase which makes this saving increase annually.

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