Digression: Caution about “Increases” and “Decreases”

These increases or decreases, it must be emphasised, would be not necessarily absolute, but relative to what real wages would have been, depending on other variables, if the money wage change had not taken place. It is necessary to be reminded constantly that we are dealing with an array of interdependent dynamic variables. This unavoidably complicates all considerations.

Because, C, D and XYZ are continually affecting A in their own way, it is not possible simply to say that if you increase B, A will fall.

It would be more accurate to talk of upward or downward pressure being put on variables.

If a rise in A puts upward pressure on B, B may still fall, but as much as it would have in the absence of the rise in A.

This caution will need to be referred to at many other points.

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