Economics Volume II: Modern Economic ProblemsFetter, Frank A. (Frank Albert)
General
Economics Volume II: Modern Economic Problems
Fetter, Frank A. (Frank Albert)
Economics
§ 2. #The shorter day and the lump of labor notion.# The shorter
working day is advocated by most workers in the belief that it will
result not in less pay per day, but in even greater pay than the
longer day, even if the output should be decreased. This view is
connected with the lump of labor notion.[2] It assumes that men will
work no faster in a shorter day, and that there is so much work to be
done regardless of the rate of wages; and concludes that the shorter
day will reduce the amount of labor for sale and cause wages to rise.
To the extent, however, that laborers, as consumers, mutually buy each
other's labor, evidently this loss due to curtailing production must
fall upon the laborers as a class. The workers nearly always call for
the same daily pay for a shorter day, which means a higher wage per
hour. If wages per hour increase less than enough to make up for the
fewer hours,[3] the purchasing power of the workers must be reduced.
If the output per hour is increased proportionally to the pay per
hour, the existing wages equilibrium would not be disturbed. But if
the output increases not at all or in less than the proportion of
the increase in pay, there is an inevitable disturbance of the wage
equilibrium. In a competitive industry this would compel a speedy
readjustment of wages downward. If a certain group, or large number,
of workers were to begin turning out only 80 per cent as large a
product as they did before while getting the same money wage, the
costs per unit would be thereby increased. Prices must rise or many of
the establishments must close, and then prices would rise as a result.
This must throw some of the workmen out of employment and create a
new bargaining situation for wages. If the general eight-hour day were
applied to every industry and to all wage workers at once, then
all workers and all employers in the industry would be in a like
situation. But at once there must occur changes of consumers'
choices in a great number of ways. If there are one fifth fewer goods
evidently at least one fifth of the consumers must go without. This
would largely be the wage workers. The things of which wage labor
makes up a large part of the costs will rise in price relative to
the things of which self-employed labor and of which materials
and machinery make up a relatively larger part. This must compel a
reduction of the demand for the products of wage labor relative
to other things, and be reflected to labor in a lower wage. This
reduction would not necessarily be just in proportion to the reduced
output (that is, say, 20 per cent if from 10 to 8 hours, or 11 per
cent, if from 9 to 8 hours). It might even be more, but probably would
be somewhat less. In any case, both the money wages and the real wages
of laborers, either in the particular trade or generally, must be
reduced by a general reduction of hours that results in a decreased
output. In such cases, even when the workmen by a strike or general
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