enter into the determination of the level of earnings of one kind of
labor may not affect the level of earnings in other groups. The
differences between the level of earnings of the various groups cannot
be explained entirely as "equalizing differences." The "perfect liberty"
of choice of Adam Smith does not exist.

Therefore, an investigation of wage principles requires study of two
sets of forces and relationships. Firstly, of the forces which govern
the outcome of distribution as between each and all of the labor groups
and the other agents of production.[29] And secondly, of the causes of
the formation of relatively separate groups of wage earners, and of the
forces which govern the differences of wages between them. The first set
of these distributive relationships has been the principal subject of
this chapter. The other set will be the principal subject of the
following chapter. Any policy of wage settlement must be based upon a
knowledge of both sets.

FOOTNOTES:

[12] H. Clay, "Economics for the General Reader" (English
edition), page 333.

[13] See A. C. Pigou, "Wealth and Welfare," page 20.

[14] A. Marshall, "Principles of Economics" (7th edition),
page 138.

[15] See pages 56-8, this chapter.

[16] Address of Mr. Harrington Emerson at the National
Conference of the "Society of Industrial Engineers and
Western Efficiency Society" on labor problems.

[17] G. D. H. Cole, "The Payment of Wages," page 67.

[18] Final Report of the Committee on Industrial Relations
(1912-16). Report signed by Commissioners Manly, Walsh,
Lennon, O'Connell, and Garrettson--the section on scientific
management stated to be based on an investigation conducted
by Frey, Valentine, and Hoxie, page 128, Vol. I.

[19] _Ibid._, Vol. I, pages 131-2.

[20] R. F. Hoxie, "Trade Unionism in the United States,"
page 162.

[21] London _Times_, Feb. 7, 1920.

[22] G. D. H. Cole, "Payment of Wages," page 30. Discussion
of the speeding up question. The best analysis of the
problem created by the introduction of new and simplifying
machine processes in skilled trades is to be found in a
volume called "Labor, Finance, and the War," Report of the
Committee of Investigation (1917), The Econ. Section,
British Assn. Advancement of Science. In the same volume
there is a careful analysis of the whole question of
limitation of output. See also the chapter called
"Unemployment" in Lord Askwith's "Industrial Problems and
Disputes."

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