Essentials of Economic Theory: As Applied to Modern Problems of Industry and Public PolicyClark, John Bates
General
Essentials of Economic Theory: As Applied to Modern Problems of Industry and Public Policy
Clark, John Bates
Economics
_Fidelity as affecting the Productivity of Labor._--The fact that all
workmen are largely their own directors brings fidelity into the
foreground as an element in determining men's earning power; but this
element counts for much more in the civilized state than it does in
the primitive one, for here fidelity in directive laborers of the
highest type is most important and difficult to secure. One of the
greatest problems of modern business is how to make directors and
executive officers of corporations faithful to the stockholders who
employ them. In the primitive state these problems do not arise. When
a man is working for himself, mere interest largely takes the place of
fidelity. If to-day any one secures a good house of his own to live
in, it is because he employs contractors, overseers, and artisans all
of whom are, in the main, faithful to his interests and see that the
work of building is properly done. A savage looks after his own
interests as his personal work proceeds; and yet even in his case
there is the germ of that enthronement of character in the supreme
place which is the prominent feature of highly organized industry. In
building a hut to shelter his family, a savage puts into his work
conscience and affection as well as muscular effort; and when the
mother of the family does this work, the altruistic element in it is
still more conspicuous. As society becomes highly organized the
importance of the moral element in all labor increases till the
further progress, or even the existence, of the social order may be
said to depend on it. In the world of business there is now distrust
and turmoil, and revolutions are feared, because of the unfaithfulness
of a class of men to trusts committed to them.[6]
[6] On the ground of convenience, we may classify labor as
physical or mental, according as the work of muscle or of
brain is especially prominent. Digging a ditch requires more
than an average amount of strength and not even an average
amount of intelligence, and it is, therefore, physical labor
rather than mental; while writing a brief or arguing a case
in court requires much power of thought and only a small
amount of muscular strength, and is typically mental labor.
Managing an estate for an absent owner is more largely a
moral function, since the value of the service depends
chiefly on the fidelity of the man who renders it; but
physical and intellectual labor are also involved. These
three types of personal effort are exerted wherever wealth is
created.
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