French and German Socialism in Modern TimesEly, Richard T. (Richard Theodore)
History
French and German Socialism in Modern Times
Ely, Richard T. (Richard Theodore)
Socialism -- France; Socialism -- Germany
This law of wages may be difficult for those to comprehend who are not
thoroughly familiar with economic discussions. In order to make it
clearer, I will quote, with a few changes and abbreviations, a passage
of some length from John Stuart Mill,[188] giving a lucid explanation
of the law. “Mr. Ricardo assumes,” says Mill, “that there is everywhere
a minimum rate of wages—either the lowest with which it is physically
possible to keep up the population, or the lowest with which the people
will choose to do. To this minimum he assumes that the general rate of
wages always tends; that they can never be lower beyond the length of
time required for a diminished rate of increase to make itself felt, and
can never long continue higher. This assumption contains sufficient truth
to render it admissible for the purposes of abstract science.... But in
the application to practice it is necessary to consider that the minimum
of which he speaks, especially when it is not a physical, but what may be
termed a moral minimum, is itself liable to vary.” A rise of the price of
food will permanently lower the standard of living of laborers, “in case
their previous habits in respect of population prove stronger than their
previous habits in respect of comfort. In that case the injury done to
them will be permanent, and their deteriorated condition will become a
new minimum, tending to perpetuate itself as the more ample minimum did
before.” It is to be feared that this is the way in which a rise in the
price of provisions usually operates. “There is considerable evidence
that the circumstances of the agricultural laborers in England have more
than once in our history sustained great permanent deterioration from
causes which operated by diminishing the demand for labor, and which,
if population had exercised its power of self-adjustment, in obedience
to the previous standard of comfort, could only have had a temporary
effect; but, unhappily, the poverty in which the class was plunged during
a long series of years brought that previous standard into disuse, and
the next generation, growing up without having possessed those pristine
comforts, multiplied in turn without any attempt to retrieve them.” ...
The salutary effect of a fall in the price of food is of no permanent
value “if laborers content themselves with enjoying the greater comfort
while it lasts, but do not learn to require it.... If from poverty their
children had previously been insufficiently fed or improperly nursed, a
greater number will now be reared, and the competition of these, when
they grow up, will depress wages probably in full proportion to the
greater cheapness of food. If the effect is not produced in this mode,
it will be produced by earlier and more numerous marriages, or by an
increased number of births to a marriage.” I believe Mill renders the
law as plain as it can be made, without entering into subjects foreign
to this work. The standpoint is this: labor is a commodity, like wheat
Public-domain text, read in full here on John Shaqi.
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