Vom Wirtschaftsgeist in Amerika

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Monograph

Identifikator:: 1748646508

URN:: urn:nbn:de:zbw-retromon-122686

Document type:: Monograph

Author:: Rühl, Alfred http://d-nb.info/gnd/118750267

Title:: Vom Wirtschaftsgeist in Amerika

Place of publication:: Leipzig

Publisher:: Quelle & Meyer

Year of publication:: 1927

Scope:: IX, 122 S

Digitisation:: 2021

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: III. Das Verhältnis zum Gelde

Collection:: Economics Books

WAGES NOT UNIFORM — NON-COMPETING GROUPS 49 wages are less than prevail in other German industries. Our figures then are modified thus: In the U. S. 10 days’ labor » » 1. S. 10 » ” Germany 1. ” ” " Germany 10 ” > WaGEs PER DAY $2.00 £2.00 $1.00 20.75 TorAL WAGES $20 $20 310 ® 7.50 Propuce 30 wheat 20 linen 15 wheat 10 linen DomesTic SurpLy Price $0.662 $1.00 $0.662 $0.75 Wheat is still at the same price in both countries. But linen is now cheaper in Germany, and moves from Germany to the United States. At first specie alone moves from the United States to Germany. As prices fall in the United States and rise in Germany, wheat becomes cheaper in the former and dearer in the latter. Wages fall in the United States, rise in Germany. Equi- librium will be reached under conditions somewhat like these : [n the U. S. 10 days’ lab- 1” 3» U. S. 14 ” Germany lt ” Germanv 10 WAGES DER. At -~ ToraL WAGES Propuce 20 wheat inen wheat linen DomEesTIC SuppLy PRricE $0.60 $0.90 $0.73% $0.82% This particular relation of prices and of money wages would be reached (wages in the United States $1.80, wages in Germany generally $1.10), as need not again be explained if the demand for linen in the United States and the demand for wheat in Ger- many were such that the money value of the wheat sent from the United States exactly equalled the money value of the linen sent from Germany. The general outcome would plainly be that grade developed precisely as if the Germans had a comparative labor advantage —a comparative effectiveness of labor — in making linen. The conditions of labor cost are such that if these were the only governing factors, no trade between the two coun- tries would develop. But the exceptionally low wages of the German linen workers cause Germany to have the equivalent of a comparative advantage. The case is the converse of that just considered. Now push the matter a step still further. Tho we may conceive of non-competing groups as separate and distinct, it never happens

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