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19,59 V/ien Schwarzhorngasoe 1 n /17 
24 th June 70 
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Thanks f ir letter and cheque. I am jolly ell pleased to hear 
that yu will be coming to Europe in summer in the coming years. 
I was most interested in y ur paper and I hasten to give 
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you 3uch comments as struck my mind immediately. They may be , an 
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expression of my lioness or inattentiveness, but then there are 
many other readex‘3 1 ko that! 
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Tv/o points are obscure to me: The sentence on p.13,li e 4 
which Establishes a symmetry between management in one cane and 
trade unions In the other, which I just don't understand, lay be 
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you have been bewitbhed by ^arshis. 
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'X forget what exactly are your reasons why you don't accept the point 
f view that trade uni>ns have a strong resistance against decrease in 
m »oy wages which t Is; t t mporarily ma es sense. Th o downward spiral 
^ of the 3 ’ies which y u mention was largely c nfined t ■%orica whore 4/ 
bef re 193 there were no (mass) trade unions. There were deflati no in 
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the 19th century in absence of massive uni ns Hot in Ear pc si..do 
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the 2 r ies at the latest. V"' • \ 1 h 
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Another p|>int struck me in this c nnecti n ^alecki shid in a sharp 
recession in vie of the burden of fixed c st firms may by tacit agreement 
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increase tie mark-Up S me .15 ec nmists think this happened in 1974! 
The sere nd obscure point is the moraladvantage of workers (p 13 
anil p ( 3a).; The level of comfort f'r the firms must rel te t profit rate 
fyiou can it be compared to that of the v/>rker? And if they have this 
oral alvahtage why can' they expl it it much more? Both points.want 
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Yonr discussion offthe c t of hiring is very impressive and 
the conclusion is precise and 1 cans* t object to it (pO^end of first parag) 
It all depends on the lack of confidence in the durability of the 
upswing! ( It is of course all related to the 'resent situation ) 
apsychology which is not difficult to exlain’i the lands of Schmi t, 
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u artor- w lur.lonthal and Haynond Barre. 1 am only afraid that the economists 
of to-day 1 will overlook the precise formulation and will triumphantly 
rest yur arguments as a proof that the Phillips cuyve has shifted 
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Your f mu 1 at ions on p 5 will enc mrage thefe! 
In the oil case(p1 ) y -u do t mention that the situation really 
depends ,,91^ the fact that the oil pruducers do n t s end the y receipts . 
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