Das Lohnproblem

[Title Page and Publication Details]: Title page and publication details for Alfred Amonn's 'Das Lohnproblem', second expanded edition published in 1945. [Preface to the Second Edition]: Amonn reflects on the 1929 origins of the text, discussing the historical context of wage movements and union theories regarding productivity. He justifies the second edition by the enduring relevance of wage theory for post-war economic policy. [Table of Contents]: A brief overview of the four chapters covering national income, wage formation under competition, historical development, and artificial wage influences. [Chapter 1: National Income, Distribution, and the Problem of High vs. Low Wages]: Amonn defines national income and the role of wages within the distribution process. He argues that wage policy must prioritize economic utility and productivity over abstract notions of 'justice' to avoid harming the total product. A critical portion of the chapter is dedicated to disambiguating the term 'wage', distinguishing between nominal and real wages, and more importantly, between the 'wage price' (per unit of labor) and 'total labor income'. He warns that increasing the wage price does not necessarily increase total labor income if it leads to unemployment or reduced hours. [Chapter 2: Wage Formation Under Free Competition]: This chapter analyzes wage determination using the framework of supply and demand under free competition. Amonn refines these concepts by distinguishing between the volume and urgency of supply/demand. He explores the relationship between labor and capital as complementary factors, noting that the demand for labor is derived from the demand for products and the availability of capital. He argues that an equilibrium wage exists where labor supply equals demand, and that while a physical subsistence level forms a floor, productivity and capital accumulation typically allow wages to rise above this minimum in developed economies. [Chapter 3: The Development of Wages During Economic Growth]: Amonn examines how wages evolve alongside population growth, capital formation, and technical progress. He refutes the idea that wages must remain at subsistence levels, arguing that if capital grows faster than population, the relative and absolute share of labor increases. He also discusses the cyclical nature of wages during 'Konjunkturen' (business cycles), noting that while nominal wages fluctuate, the long-term trend in a developing economy is toward higher real wages and total labor income, provided capital is not misallocated through 'over-capitalization' or 'malinvestment'. [Chapter 4: Artificial Wage Influence and Monopolistic Labor Markets]: The final chapter critiques artificial attempts to raise wages through unions or legislation. Amonn argues that while unions can correct 'under-normal' wages caused by employer monopolies, pushing wages above the equilibrium level leads to 'forced rationalization' (replacing labor with capital) and chronic unemployment. He critiques the 'purchasing power theory' of wages, asserting that total labor income often falls when wage prices are forced too high. He concludes with observations on wage policy during crises and war, emphasizing that wages must ultimately reflect the actual productivity and the 'real' national income available, rather than nominal targets.