Competition; Monopolies -- United States; Trusts, Industrial
There is another way in which monopoly works to cause over-production,
with its attendant evils. Suppose a trust is formed in some
manufacturing industry, where the working capacity is just equal to
supplying the demand. The first work of the trust is to raise the prices
perhaps 20, 30, or 40 per cent. Of course this causes a falling off in
the demand, and the trust has to shut down some of its mills to ward off
over-production. The true cause of over-production in this case is, that
the prices are not in equilibrium with the relation between supply and
demand. Let prices come down, and the demand will increase. The working
of this special case gives us an idea of the way in which general
over-production is caused. For it is well known that monopolies have
raised the prices and reduced the consumption not of one, but of
hundreds of articles. If the men who are made idle by the
over-production in these industries flock into other occupations to
secure work, they reduce wages there; so that, in any case, their
purchasing power is reduced, and this tends to perpetuate and increase
the evil. Of course it is not pretended to claim that all industrial
depressions have been due to over-production, or the local congestion
of the world's income. But that a large part of it may be justly laid to
this cause, seems to be beyond question.
We have shown that the congestion of wealth is very largely due to the
growth of monopoly, and we have discussed the more immediate evils that
result from this congestion of wealth. But when we attempt to describe
the evils and abuses which follow close after, as a result of the power
which monopoly has placed in the hands of a few, we may well pause at
the task. The whole array of perplexing social problems comes before us,
and we realize more and more what a curse monopoly has become. The
philanthropist tells us that poverty, and all the distresses that follow
in its wake, are largely due to the fact that our workingmen under
present conditions _must_ live from hand to mouth, _must_ rely on
charity for aid in every emergency, and _must_, therefore, decrease in
manliness and self-reliance and the ambition to better themselves, as
the practical impossibility of success is comprehended.
Good men are lamenting because the Church has, to a great degree, lost
its hold on the laboring classes, and are casting about on all sides for
a remedy. Will they ever find one as long as the wage-worker carries in
his bosom a rankling sense of injury done him? Injury which he feels
that the Church is merely seeking to drug with charity instead of
wishing to cure it with justice? There is great need that the Church,
not alone by the sermons of its most enlightened thinkers, like Dr.
Heber Newton, but by the daily practice of the rank and file of its
membership, should recognize, as it never yet has done, the great
principles of human fraternity, and move intelligently and earnestly to
remedy the great evils that menace us.
Public-domain text, read in full here on John Shaqi.
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