The best way to help the labour is to increase the value of
their wages, actually real wages, by reducing inflation and prices overtime. Samuelson
states that real-wages should rise in the long-run, one of the stylized-facts.
A stylized fact is based on evidences. Nominal-wages are downward rigid which
means they do not go down easily because that would cause conflict and friction
between capitalists and labour and would be a moral issue. Labourers are poor-
people compared to the Capitalists. There is always a tussle between (them) that
Capitalist will keep wages low and labour to keep them high. And in this battle
labour is paid a raise only as much as inflation has increased which has kept
their purchasing-power constant but not increasing. The real wages has remained
subdued where they were years ago. It is true that the number of good-things in
life has increased but they are still beyond the reach of everyone. This means
that there are more goods relative to money in people-hands which makes money
scarce than goods cheap. Prices should fall, but this has not happened which
means that real wages has gone down means less demand (due to inflation) for
the industry itself because prices has increased more than wages that points
that the distribution of income is far from equitable. Another stylized-fact is
that share of labour and capital would remain constant in the long-run and.
Economic policies should aim equitable income distribution according to
productivity.
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