Economics Volume II: Modern Economic ProblemsFetter, Frank A. (Frank Albert)
General
Economics Volume II: Modern Economic Problems
Fetter, Frank A. (Frank Albert)
Economics
The employers will often, to break a strike, pay to others for a time
more than the current rate of wages. The success of the strikers being
dependent on their ability to keep the employer from filling their
places, their energies are bent upon that end. The losses that strikes
cause to workers in stoppage of wages, to employers and investors in
destruction of plant and in suspension of profits, and to the public
in the interruption of business, aggregate an enormous sum. The direct
losses to employers and strikers in the 20 years between 1881 and 1900
have been estimated to have been nearly $500,000,000, a large sum, but
amounting to less than 1 per cent of the wage-earners' incomes. It
is, however, impossible to estimate at all exactly losses that in many
cases are indirect and intangible. The strikers are concerned in each
case not with the balance of total losses and total gains to society
as a whole, but with the net gain that they expect to accrue in the
long run to themselves. Viewed in this way it is true that there are
various indirect benefits in strikes that are not easily calculable,
particularly the advances of wages made by employers to avoid strikes
which they know will otherwise occur. In regard to the wisdom of any
contemplated strike, opinion is always somewhat divided, as it is in
regard to the value of strikes in general.
§ 9. #Frequency and causes of strikes#. Strikes were relatively
decreasing in number from 1880 to 1900, but from 1901 to 1905 the
annual average was more than twice as large as in the preceding
decade. On the whole, strikes have been more numerous in periods of
business prosperity when there was a better chance to get concessions
from the employers. But they occur also in the periods following
crises, when the workers seek to minimize cuts in wages and to prevent
the depression of working conditions. More broadly viewed, strikes
appear to accompany readjustments to dynamic conditions. As wages as
a rule rise more slowly than general prices,[5] it was to be expected
that the period since 1900, in which the general price level was
rising at the rate of about 3 per cent a year, should have been marked
by increasing resort to strikes.
Public-domain text, read in full here on John Shaqi.
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