Another way, more practical and even already tried though without sufficient firmness or persistence, is to freeze money wages and salaries indefinitely and allow normal increases in the money supply to force more and more into other channels – profits and investment capital.
This would also have the effect of putting upward pressure on money prices and downward pressure on real wages. Thus wages would steadily decrease as a fraction of the outlay needed to make goods and services, so that in more and more cases it would become worthwhile financially to employ people previously excluded from the work force.
The point to keep in mind is that in the private sector, if it is profitable to employ people, they will be employed, if not, they won’t.
Once the prolonged freeze had achieved full employment, which it would eventually in the absence of severe economic disruption, a new wage adjustment system, as described in the next post but one, could be instituted.