Economics Volume II: Modern Economic ProblemsFetter, Frank A. (Frank Albert)
General
Economics Volume II: Modern Economic Problems
Fetter, Frank A. (Frank Albert)
Economics
§ 12. #Earlier and recent effects of immigration upon wages.# Let us
now correlate the principle of decreasing returns and the facts as to
the exploitation of our natural resources[10] with the growth of
our population, on the assumption that immigration has been a net
contribution to our numbers. While the vast frontier was open to
settlement, the growth of population could not fail to be looked
upon as a blessing, even tho somewhat mixed with political evils,
immorality, and pauperism. Beginning in colonial times, the policy of
"the open door" to immigrants came thus to be deemed the traditional,
patriotic American policy. Yet there is grave reason to believe that
the rate of growth in the nineteenth century was wastefully rapid and
that a slower and sounder growth might have been better.[11] However,
this rapid growth was largely extensive, spreading over wider areas,
and was consistent with a pretty steady rise of real wages in America
until about 1895,[12] the level continuing higher than that of Europe
despite the contemporaneous rise of wages there. Much of this general
rise is undoubtedly attributable to the adoption of better tools,
machinery, and industrial processes, the more so as inventions and
new methods have rapidly become free goods.[13] The beneficial
improvements long cooperated with the rapid exploitation of rich
resources to raise real wages, and then undoubtedly continued to
offset for a time the unfavorable effects as the richer resources
began to show signs of exhaustion. Since the end of the last century,
however, the net trend upward seems to be checked, and "the rising
cost of living" (real cost) has come to be a serious actuality for
larger sections of the population.[14]
Yet so long as wages are enough higher in America to pay the passage
of the low-paid workers of the industrially backward nations, they
will continue to come. The ease and cheapness of migration in these
days of steamships, the encouragement of immigration by the agencies
and advertisements of the steamship lines, and the increasing
readiness of the peasantry to migrate, have become well known through
recent discussions. Unless immigration is limited, it must continue to
depress the wages of American workingmen, through both its immediate
and its ultimate effects.
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