Economics Volume II: Modern Economic ProblemsFetter, Frank A. (Frank Albert)
General
Economics Volume II: Modern Economic Problems
Fetter, Frank A. (Frank Albert)
Economics
§ 8. #Popular theory of immigrant competition.# The depressing effect
of the ever-present and ever-renewing supply of immigrant labor upon
wages appears most clearly at the time of wage contests, and often
seems to be the most important aspect of the question. Laws against
contract labor, passed to prevent this particular evil, have put
no check to the great stream of those guided by friends to a "job."
Organized labor thinks most of these immediate effects. Commonly
labor's protest is expressed in terms of the untenable "lump of labor"
theory of wages. "Every foreign workman who comes to America" is
believed to take "the place of some American workman." The error in
this too rigid conception of the influence exerted upon wages by new
supplies of labor is evident in the light of the principles of wages.
Yet it may be true that, both immediately and ultimately, the foreign
workman depresses the incomes of those already here with whom he
directly competes. On the other hand, those in occupations into
which few immigrants enter may, as consumers of cheaper products,
be immediately the gainers in real wages, by the very change
that depresses the wages in the lower strata.[5] The
manufacturing-employers advocate "protection" which enhances the price
of their products, while usually favoring "free trade" in immigration
to cheapen their costs. What more natural than that laborers should
favor a policy of protection to labor, to keep foreigners from coming
here to be their competitors.
§ 9. #Divergent views of effects on population.# The foregoing views
of the effects of immigration upon wages, both of those favoring and
those opposing it, are short-time views, relating to immediate rather
than ultimate effects. If the immediate causes are continuously
repeated throughout the lives of successive generations the results
are for those mortal men as ultimate as anything that concerns them.
In this case it would make no difference to the millions of workers,
whose wages are depressed, if it could be shown that wages fifty or
a hundred years from now would be no lower as a result of continued
immigration than they otherwise would be; or to the employer that
wages would then be no higher. But to the social philosopher and to
the statesman, interested in the abiding general welfare, the ultimate
economic effects are of the greatest importance.
The question is: What will be the far-reaching, long-time effects of
immigration upon the general economic situation, as that determines
the welfare of the mass of the people? We confine ourselves here to
the economic effects, leaving aside as far as possible the racial,
moral, religious, political, and general social aspects of the
subject.
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