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
In the absence of an unusually great increase in the consumption of an
article the improvement which reduces the cost of it tends to displace
labor. The first thing that will occur to any one who looks for
influences which mitigate this evil is the fact that economical
changes are going on at nearly all points in the system, and that this
cancels out most of the displacing influence. If something sends men
from the group _A_ to groups _B_ and _C_, while something else sends
them from the group _B_ to groups _A_ and _C_, and still another
influence impels men from _C_ to _A_ and _B_, there is likely to be
very little actual moving. A question will in such a case arise as to
whether the three movements may not expel labor from all the groups
and remand them to a state of idleness. History is clear in the answer
it gives to this question; such a result has not occurred, and at the
end of a century of brilliant mechanical progress the amount of
enforced idleness is not greater than it was at the outset. It remains
to show that economic law precludes a universal displacement and
insures laborers for all time against being at the mercy of an
industrial system which has nowhere any need of their services.
Productive devices widely introduced mean great and general gains and
comparatively little cost. They mean what on their face they ought to
mean, more comforts and less toil for everybody. Before studying this
influence--the reciprocal action of improvements scattered through the
general economic system--we have to determine the action of one or two
other influences which also lessen the disturbances which progress
causes.
One can see that the quick adoption of an economical device in every
shop of a subgroup, at a time when all other industries are in a
stationary state, would usually expel some labor from that one. If
consumers should, on a large scale, substitute the product of this
subgroup for that of others, it might save the situation; but the
general fact is that the consumption of the cheapened product must
increase in a ratio that is greater than the ratio representing the
saving of labor used in making it, in order to prevent displacement of
labor. If we get on with two thirds of the labor which the making of
the commodity out of raw materials formerly required, we do not save
two thirds of the total expense of making the finished article; and
yet to retain all the labor that is now in the business we must sell
one and a half times the former number of the goods produced.[1]
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account