Should the State Interfere in the Determination of Wage Rates?

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The most that can be accomplished in such a study is the suggestion of the general principles that should be applied.
The details of the regulatory program must be left for determination by the proposed Industrial Commission of each jurisdiction.
The principle of the minimum wage based upon the cost of living must form the keystone of any regulatory system. But such control goes only part way. It must be supplemented by mediation, conciliation, and investiga- tion. Such agencies provide state a
...id for voluntary settle- ment of wage disputes, but they do not prevent industrial disturbances and they do not settle the issues which stir up industrial unrest. They are concerned with effects, not causes, and the settlements they bring are necessarily temporary, for the cause of dispute remains. Their object is to minimize the amount of state wage-making, and, in so far as practicable, keep the control of industry in the hands of the participating parties.
Arbitration is necessary to secure a final settlement of wage controversies and to remove the causes of friction between employers and employees.


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