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 gen- 
erally 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 na- 
tional 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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