formulated, would be that the product of industry is already being
shared out among the various agents of production in such a way that an
attempt on the part of any agent to get more than what it is receiving
at any particular time can result only in a price increase. For each
agent, it is presumed, is getting its "normal" share as settled by the
general economic position and certain unchangeable economic laws. The
idea is but the shadow of the theories of normal distribution mentioned
in preceding chapters. It does, in common with these theories indeed
draw attention to certain fundamental economic relationships. These
Judge Brown has expressed well in one of his decisions which reads, "The
element of truth in the 'Theory of the Pernicious Circle' is that, at a
given stage in the history of a particular society, there is a limit to
the amount which should properly be awarded for wages,--both wages and
profits have to be paid out of the price paid by the consumer. If,
whether by collective bargaining or by strikes, or by judicial
regulation on the part of the public authorities, an attempt is made to
narrow unduly the margin of profit on capital, then there is likely to
be a period of industrial dislocation, and every class in the community
is likely to suffer."[57] But the idea has all the misleading effects
which have been attributed to that general theory of distribution of
which it is a corollary. It is derived from an analysis of the
distributive process which does not fit all the facts.

FOOTNOTES:

[38] For data upon this irregularity, see the tables in W.
C. Mitchell, "Report on Prices in the United States,"
1914-18. See also his "Gold, Prices and Wages under the
Greenback Standard." Tables 20-22 for study of dispersion of
retail prices.

[39] "Business Cycles," W. C. Mitchell, page 95. See also
page 109. "In the case of animal and farm products, however,
where dependence is not upon natural deposits of minerals
and forests which have grown through decades, but upon the
fruits of human labor during one or two seasons, frequent
contradictions between the movement of prices on the one
hand, and changes in business conditions on the other hand,
seem likely to continue for a long time to come." See also
"Gold, Prices, and Wages under the Greenback Standard,"
pages 48-54.

[40] See W. C. Mitchell, "Business Cycles." Also B. M.
Anderson, Jr., "The Value of Money."

[41] See W. C. Mitchell, "Business Cycle