It is certain that #a real increase of wages to the people at large is
to be obtained only by making things cheaply#. No doubt a tradesman
gains sometimes when the goods he deals in become dearer, but to the
extent that they are dearer, all consumers of the goods lose, because
they can enjoy less comforts and necessaries. But, if goods are made
cheaply, all consumers gain thereby, and, all people being consumers,
all gain so far as they use the cheapened articles. Nor does it follow
that artisans and tradespeople suffer by the cheapening of goods. If,
owing to some invention, much greater quantities are made with the same
labour, the artisan will probably be able to sell his share of the
produce for more than before, that is, his wages will rise instead of
falling by the cheapening of the produce. The tradesman, again, may gain
less on each separate article that he sells, but he may sell so much
more than before, that his total profits may be increased. The result to
which we come is, then, that #all increase of produce, and cheapening of
goods tends to the benefit of the public, and this is the true way in
which people are made richer#.
#44. How Differences of Wages arise.# It is very important to understand
rightly the reasons of the great differences which exist between the
rates of wages paid in different occupations. Some kinds of labourers
are paid a hundred or even a thousand times as much for a day's work as
others, and it may seem very unfair that there should be such great
differences. We must learn to see that this is the necessary result of
the various characters and abilities of persons, partly arising from the
actual strength of mind and body with which they were born, partly from
the opportunities of education and experience which they have happened
to enjoy. We are often told that all men are born free and equal;
however this may be in a legal point of view, it is not true in other
ways. One child is often strong and stout from its earliest years;
another weakly and unfit for the same exertion. In mind there are still
more remarkable differences.
Public-domain text, read in full here on John Shaqi.
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