regard as a week's earnings. Now,
would it not seem natural to expect that any man encountering improved
market conditions for his output, whether of commodity or service,
would seek to turn the situation to advantage by increasing that
output as largely as lay in his power? If, for instance, I can
manufacture shoes to sell for $4.00 a pair and a change in market
conditions is such that I can obtain $5.00 a pair, I would endeavor to
produce more shoes in order to profit by the favorable market; and if
thereafter the price should rise to $6.00 and $7.00 and $8.00 a pair,
at each increment my efforts would be still further intensified. That,
indeed, is the normal economic attitude. Fluctuations in the price
level due to changes in the demand for a commodity are expected to
affect, and do affect, the market supply. At a higher price,
production is stimulated and more units of the commodity are brought
to the market, both from new sources and from old sources. Under
falling prices, on the other hand, the supply offered in the market
would become automatically diminished.

This is an elementary commonplace in economics, yet the laborer to
whom we have just referred does not seem to recognize it. He may find
that he can earn in, say four days, an amount equal to his former
earnings in six days and, therefore, at the end of the fourth day he
quits work for the week. Now, obviously under such increasing wage
scale, he might do one of three things:

He could quit at the end of the fourth day, having received a week's
income.

He could continue working for the six days and use his surplus
earnings for comforts, pleasures, and luxuries which previously he had
been unable to afford.

He might work for the six days and save as much as possible of his
excess earnings.

Now, what is the wise choice for the laborer? Leaving out of account
special cases where he has a large family, or sickness at home, or is
under some other disability which in his individual case would reduce
his earning power or increase his minimum expenses, ought he not to
work for the six days, putting aside all he could of the excess as
savings for the future? It will be generally conceded that this is
self-evident. If, viewing the narrow conditions under which the
workman ordinarily lives, it should be claimed that during a period of
unusual earnings self-gratification would be not only natural but
measurably justifiable, the reply could be made that this