Keynes on wage cuts

[Carrol Cox]

>From distant memory. Paul Samuelson wrote a column for Newsweek back in
the '70s. In one of those columns he commented on the high inflation of
the late '70s, and his point was exactly this, that it was a neat way to
lower wages. He said something like "Blood would run in the streets" if
a nominal wage cut of similar magnitude were put through. I think he
overestimated the willingness of the working class, at that time, to
fight. But it would be nice to think otherwise.

Carrol

Doug Henwood wrote:
> 
> Keynes, Treatise on Money, vol. 2, p. 154
> 
> "As between a policy of lowering money wages or one of letting prices
> rise, it would be natural - and sensible - to prefer the latter."