Principles of Political EconomyPerry, Arthur Latham
General
Principles of Political Economy
Perry, Arthur Latham
Economics
We are looking now solely at what constitutes the Demand for laborers
of the second class. As always, so here, there is Desire first and
then a ready Return-service. The Desire of employers of this class is
for a Profit on their capital, and the return-service for the laborers
is present as a part of these capitalized products. This part of the
capital we call Wages-Portion. It is already in hand or provided to be
in hand when the wages fall due. Of course it is expected, that the
current wages will ultimately come out of the current joint-production
of the laborers upon the capitalized products set apart for that
purpose by the capitalist. But if the profits fail to the capitalists
at the end of that industrial-cycle, whether it be two months or
twenty-four, then Desire will fail or be weakened to hire laborers for
the next cycle, and the return-services or Wages-Portion with which to
pay them for another cycle will be lessened of necessity. Both
elements in Demand are curtailed by the falling-off of Profits. There
is at the same instant less desire to buy services and less ability to
pay for them. It is of the very nature of capitalized products to wear
out in the process of production; if there be not net profits at the
end of the cycle for the capitalists, it shall go hard but there will
be less wages for the laborers during the next cycle. This is not a
matter of sentiment or of philanthropy, but of eternal law, which God
has ordained and the devices of men cannot frustrate. Capitalists and
laborers are joint partners in the same concern. Under industrial and
commercial freedom their interests are identical. Both are buyers and
sellers to each other at the same instant; and, as always when both
parties are alike benefited and satisfied with a trade, both will
cheerfully and profitably continue the connection. The Demand of each
class for the product of the other will continue unabated. Profits and
wages reciprocally beget each other.
Public-domain text, read in full here on John Shaqi.
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