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 Natural Tendency perverted by Monopoly._--When hardships come on
a large scale in consequence of a discharging of workers, they are
chiefly due to an abnormal influence which now shows itself in ugly
and disquieting ways throughout the industrial system, that, namely,
of monopoly. Reducing forces for the sake of curtailing production and
raising prices is what does the mischief. This influence undoes at
many points the beneficent effects of free competition and causes
grave hardships to particular workers while affording no compensating
gain to the consuming public. It portends evil for society as a whole
as well as for the working classes, on which its hand may be heavily
laid. In a perfectly natural system, in which competition would do all
that pure theory at the outset of this study has assumed that it will
do, the evil entailed by local improvements would be relatively small
and the diffused benefits enormous. In proportion as the movement
approaches steadiness and as gains are made, not by radical changes,
now here, now there, and now elsewhere, with long intervals between
them, but by smaller economies made nearly everywhere and in very
quick succession, the cause of the hardship is reduced. There is less
of violent expulsion of labor from its fields and more of a gradual
drifting of _labor_ rather than particular laborers from the subgroups
that create elementary products to those which fashion them into fine
and costly shapes. There is small hardship in the natural selection by
new laborers of the employments where they are most needed, and there
is often little in a transfer of a person who has tended a machine of
one kind to a machine of a different kind. Instances there still are
of manual skill brought to naught by the invention of a mechanical
automaton that does the work more rapidly and accurately than the hand
of man can do it; and the worker who possesses this skill must
usually, in such cases, content himself with an employment where his
more general aptitudes may stand him in good stead and insure him at
least an average rate of pay. The special aptitude which he had for
performing one operation counts for nothing; and this happens when men
who have worked in one department of a mill have to accept work in
other departments of the same mill or in other employments.
Public-domain text, read in full here on John Shaqi.
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