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Productivity must support Rising Costs

In studying the post war economic situation we find that prices and wages have risen a lot, 
but a gradual rise, say 3 percent, in cost of living and wages is not fatal provided productivity
 is increasing at the same time. A rise of say 10 percent in wages (which took place in 1951) 
is something that no economy can afford. The golden rule in economics when it was a much 
simpler subject was "when in deficit contract , when in surplus expand" and that is still a good rule