The term wage inflation really began to appear in this context as far back as the 19 tens, amid labor shortages bred by the first world war. The more thoughtful of the workers realize that with peace is going to come a strenuous time of possible hardship and they are saving their money. There must be wage deflation before these costs can attain a level which will invite the normal resumption of business. Employers realize this fact and are at last, meeting the situation squarely.

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