aced with a revision of its
processes that eliminates the need for skill, and results in the
lowering of the wages of the group. This is a common event.

Up to the present, such conflicts between particular interests and the
general interest in effective production have been solved by a trial of
economic strength, and by time. The viewpoint of the wage earners is
clearly put in a statement by the National Organizer of The Transport
Workers Federation (Great Britain) before the Court of Inquiry held upon
the subject of the wages of the transport workers. He maintained "that
the industry ought to carry to a greater extent than it had done
hitherto the responsibility for the unemployment that was peculiar to
it. He had always been quite frank with the employers. If they wanted a
ship speedily dispatched he would not do it, if that meant that his men
would be thrown out of work."[21] That, however, is a method which
results ordinarily either in a sacrifice of welfare or production, or of
both. The worst results incident to these conflicts could often be
avoided by making them the subject of joint discussion by all those
whose interests are directly involved. Discussion might lead to working
compromise which would protect the wage earners against too great or too
sudden loss. Even under the best arrangements, however, such conflicts
of interest will be far from easy to resolve satisfactorily; they will
remain in the words of Mr. Cole "a question, not of machinery, but of
tact and temper."[22]

6.--We may now turn to the main question in hand. What forces do govern
the sharing out of the product of industry in the United States to-day?
What determines wage incomes? So far we have only examined the general
proposition that the larger the product, the higher wages are likely to
be, other things remaining unchanged.

The relative plenty or scarcity of the different groups or agents of
production is a constant and important force in the distribution of the
product of industry. From the perception of its significance, spring
many of the loose statements of the action of "supply and demand," which
are ventured as complete explanations of the wage situation. It is not
possible to give a simple explanation of the part which relative plenty
or scarcity does play in the determination of wages. For other forces
which affect distribution act simultaneously with it, and all
intermingle their results.

The influence of relative plent