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 Popular Inference from the Malthusian Law._--If we state the
conclusion which most people drew from the Malthusian law in its
simple and dismal form it is this: Whenever wages rise, population
quickly increases, and this increase carries the rate of pay down to
its former level. The earnings of labor depend upon the number of
laborers; a lessening of the number of workers raises their earnings
and an increase depresses them; and therefore, if every rise in pay
brings about a quick increase of population, labor can never hold its
gains; every rise is the cause of a subsequent fall.
_Malthus's Qualification of his Statement._--As we have said, Malthus
so qualified his statement that he did not positively assert that this
would describe the experience of the future; the fall in pay that
should follow the increase of numbers might not always be as great as
the original rise, and when a later rise should occur the fall
following it might be less than this second rise. In some way workers
might insist upon a higher standard of living after each one of their
periodical gains.
_Why this Qualification is not Sufficient._--The mere fact that the
standard of living may conceivably rise does not do much to render the
outlook cheerful, unless we can find some good ground for supposing
that it will rise and that economic causes will make it do so. We
should not depend too much on the slow changes that education may
effect, or base our law on anything that presupposes an improvement in
human nature. We need to see that in a purely economic way progress
makes further progress easier and surer and that the gains of the
working class are not self-annihilating but self-perpetuating. We may
venture the assertion that such is the fact: that when workers make a
gain in their rate of pay they are, as a rule, likely to make a
further gain rather than loss. While there must be minor fluctuations
of wages, the natural and probable effect of economic law is to make
the general rate tend steadily upward, and nothing can stop the rise
but perversion of the system. Monopoly may do it, or bad government,
or extensive wars, or anarchy growing out of a struggle of classes;
but every one of these things, not excepting monopoly, would naturally
be temporary, and even in spite of them, the upward trend in the
earning power of labor should assert itself. Instead of being
hopelessly sunk by a weight that it cannot throw off, the labor of the
future bids fair to be buoyed up by an influence that is
irrepressible.
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