CHAPTER VII

ACCEPTANCE OF THE THEORY OF AN
ADEQUATE BASIC WAGE

In the new constructive plan of industrial procedure,
the so-called “living wage” standard, in sharp distinction
to the “cost-of-living index” and the “commodity theory”
of wages, met with a favorable reception. As the result
of post-war agitation and education, it has been quite generally
 accepted in principle. In a number of important
wage adjustments it has also been practically sanctioned
and given concrete application.
As the cost-of-living and commodity theories declined
in influence, the living-wage principle grew in strength.
[ts practicability, or the ability of industry to maintain
such a basic standard, was for a time questioned, but after
the year 1923, with the expansion of industrial output,
the lowering of production costs and the growth of national
 income, the question of American industry being
able to support its lowest grades of industrial workers and
their families on a standard of health and modest comfort
ceased to be a matter of serious controversy. Furthermore,
since 1922, the year in which the living-wage movement
reached the stage of national discussion and agitation,
many declarations in favor of wage standards much higher
than those necessary for the requirements of minimum
health and decency have emanated from authoritative and
influential sources.

ORIGIN OF THE TERM “Living WAGE”

The “living wage” standard had its origin in a formal
way twenty years ago in Australia, when in 1907 Mr.
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