Are higher wages in wartime just capital consumption?

In the Austrian-Hungarian Empire during World War I: In order to obtain the required manpower, the armaments manufacturers began to pay their workers higher wages. This had an almost instant impact on other businesses and firms, which could not compete with the wages of the armaments industry and were thus unable to find any workers. […] The post Are higher wages in wartime just capital consumption? appeared first on Marginal REVOLUTION.