CHAPTER XII 
LABOR AND THE NEW INDUSTRIAL REVOLUTION 
A proper constructive policy of industrial cooperation 
and coordination, obviously, is also of supreme importance 
to wage-earners. It involves not only the continuance of 
existing theories and procedures as to wage determination, 
but also the development of concrete methods for the 
practical application of existing theories. Before taking 
up the considerations, however, which should affect labor 
in cooperating toward the realization of sound industrial 
statesmanship, one striking aspect of the existing situation 
should not be overlooked. 
Tt is apparent that in the extraordinary industrial de- 
velopments of the past five years, the changes which have 
occurred in theories of wage-determination have been even 
more revolutionary than those which have had to do with 
the physical equipment, technique, and administration of 
industry itself. The stones which were rejected in pre- 
war days have become an essential part of the very founda- 
tions of the new industrial order. Wage theories which 
were not even regarded as suitable for consideration, and 
which were execrated as destructive by the industrial 
leadership of the pre-war period, have been unreservedly 
accepted and applied in the new order of industrial prog- 
ress inaugurated in the year 1923. Theories and principles 
of wage fixation which formerly prevailed have been dis- 
carded for other theories and standards which, when 
formerly advocated, were rejected, often arbitrarily, by 
the pre-war captains of industry as “obviously unsafe,” 
“unsound,” or “visionary” and impossible of acceptance. 
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