176 INDUSTRIAL REVOLUTION AND WAGES
tion of economy processes. This belief is contrary to the old
accepted rule of reasoning which held that a lowering of the
cost of production could only be brought about through a
reduction in wages.
High wages can command efficiency in service. In turn,
the efficiency so secured is reflected in the volume of pro-
ductivity and, in many instances, in the character and quality
of the manufactured article.
AMERICAN FEDERATION OF LABOR CONVENTION, REPORT OF
COMMITTEE ON RESOLUTIONS, ATLANTIC CITY, 1925:
We hold that the best interests of wage-earners as well as
the whole social group are served in increasing production in
quality as well as quantity, and by high wage standards,
which assure sustained purchasing power to the workers and,
therefore, higher national standards for the environment in
which they live and the means to enjoy cultured opportunities.
We declare that wage reductions produce industrial and
social unrest and that low wages are not conducive to low
production costs.
We urge upon wage-earners everywhere: that we oppose
all wage reductions and that we urge upon management the
elimination of wastes in production in order that selling
prices may be lower and wages higher. To this end we rec-
ommend cooperation in study of waste in production which
the essay of the Federated American Engineering Societies
covering important industries has shown to be 50 per cent.
attributable to management and only 25 per cent. attributable
to labor, with 25 per cent. attributable to other sources, prin-
cipally managements in industries producing commodities for
any single industry under consideration.
Social inequality, industrial instability and injustice must
increase unless the workers’ real wages, the purchasing power
of their wages, coupled with a continuing reduction in the
number of hours making up the working day, are progressed
in proportion to man’s increasing power of production.
. . . Unquestionably the welfare of any people as a whole
