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
_The Nature of the Movements actually caused by Improvements._--This
upward movement cannot go on as smoothly and with as little
disturbance as that which is caused by the increase of capital.
Whenever a greater gain is made at one point than is made at another,
an influence is set working which, of itself, tends to send labor from
the one point to the other. The slowness with which the change of
method proceeds affords the time that is necessary for the protection
of labor in the first-named group, since little movement takes place
before the effects of improvements made in the second group begin to
be felt. If in 1906 an improvement is made which, in the course of
five years, would cause some labor to move from the subgroup _A_''' to
the subgroup _B_''', and in 1907 a corresponding improvement is made
in the latter industry, the equilibrium is restored before enough
disturbance has taken place to require any absolute reduction of labor
in _A'''_. The facts are (1) that new laborers as they enter the field
are drawn more to the upper subgroups than to the lower ones,--to the
_A'''_ and the _B'''_ rather than to the _A_ and the _B_ of the two
series,--and that in moving upward they are drawn at first more
strongly toward _B'''_ and later more strongly toward _A'''_. This is
the nearly constant fact in industry and is the grand resultant of all
the forces we have described--an upward flow that is continuous but
does not follow strictly vertical lines. As young men--the sons of
workers in _A_, _B_, _C_, and _D_, who might otherwise have remained
in their fathers' occupation--move to the subgroups that stand higher
in the several series, they first go in larger number toward _B'''_
than toward _A'''_, and later in larger number toward _A'''_. There is
a wavy movement toward the right and then toward the left in the
steady flow of labor from the groups that create the raw material to
those that impart to these materials the form utilities which they
need to fit them for service. An actual lessening of the number of
workers in an entire group in consequence of an improvement in the
method of production is practically unknown, and even a positive
lessening of the number in a subgroup is exceedingly rare.
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