Wages-fund doctrine simplified:
1. Wages increase when the wages-fund increases.
2. The wages-fund increases when profits increase.
3. Profits increase when wages are kept low.
Thus the way to increase wages is to lower them.Wages-fund doctrine updated:
1. Full employment requires economic growth.
2. Sustained economic growth requires low inflation.
3. Controlling inflation requires limiting wage demands.
4. Limiting wage demands requires a non-accelerating inflation rate of unemployment (NAIRU).
Thus the way to achieve full employment is to circumvent it.
