such an interference with the course of business as is wrought by a differentially protective tariff. The later history of America and Germany illustrates both these methods of procuring an era of prosperity. These methods, it will be noticed, are, in their primary incidence, of the nature of a waste of industrial output or energy ; but the prosperity achieved is, none the less, to be recognized as a beneficial outcome in point of heightened industrial activity as well as in point of increased comfort for the industrial classes.
To the workmen engaged in industry, particularly, substantial benefits accrue from an era of prosperity. These benefits come, not in theway of larger returns tor a given amount of work, but more work, fuller employment, at about the earlier rate of pay. To the workmen it often means a very substantial gain if they can get a fuller livelihood by working harder or longer, and an era of prosperity gives them a chance of this kind. Gradually, however, as prosperity— that ia to say, the advancing price level — rises and spreads, the increased cost of living neutralizes the gain due to fuller employment, and after the era of prosperity has been under way for some time the gain in the amount of work obtain* able is likely to be fairly offset by the increased
cost of living. As noted above, much o£ the business advantage gained in an era of prosperity ia due to the fact tljat wages advance more tardily than the prices of goods. An era of prosperity does not commonly bring an increase of wages until the era ia about to close. The advance of wages in such a case is not only a symptom indicating that the Beaaon of prosperity is passing, but it is a business factor which must by its own proper effect close the season of prosperity as soon as the advance 'in wages becomes somewhat general. Increasing wages cut away the securest ground of that differential price advantage on which an era of prosperity runs.