The Real Wage Rises During the Great Depression

In 19 thirties, the more millions left for the charity of soup lines before starvation, the higher the real wage rate had climbed. While nominal wage rates did decline in most american industry during the great collapse, it was far less than overall prices had. Thus the real wage jumped up by a sizable figure, projecting higher relative labor costs on to firms. The head scratching result has a funny fancy name, s r i r l scribble, or short run, increasing returns to labor.