I. Introductory. Definition of terms, 311. — Distinguishing features of scientific management, 312. — Scientific management is positive management, 314. — II. The influence on basic wages, 315. — Wages and the labor problem, 317. — III. The bonus method and its results, 319. — Effect of increased production on employment, 322. — Skill and initiative, 325. — Health, 327. — The “first-class,” the average, and the sub-normal; legislation on the minimum wage; employment of women and children, 327. — IV. Labor unions; incompatible policies, 330. — Possible bases of co-existence, 339. — V. Larger social problems. Unemployment, 342. — Education and skill, 343. — Inequahty of income, 345. — Democracy in industry, 346. — Prospects for the future, 348.