Principles of Political Economy, Vol. 2Roscher, Wilhelm
General
Principles of Political Economy, Vol. 2
Roscher, Wilhelm
Economics
[Footnote 163-6: The cheapening of the necessaries of life,
experience shows, is more likely to lead to an increase of
population; that of luxuries, to a raising of the standard
of life or of comfort.]
SECTION CLXIV.
WAGES.--COST OF PRODUCTION OF LABOR.
As the cheapening of the means of subsistence, when the circle of wants
of the laboring class has not correspondingly increased, leads to a
decline of wages, so an enhancement of their price must, when wages are
already so low as only to be able to satisfy indispensable wants,
produce an increase in the rate of wages. The transition in the former
case is as pleasing as in the latter it is replete with the saddest
crises.[164-1] The slower the rise in the price of the means of
subsistence is, the more it is to be feared that the working classes
will seek to meet it, not by emigration or by a diminished number of
marriages, but by decreasing the measure of their wants, the
introduction of a poorer quality of food, etc.[164-2]
However, all this is true only of permanent changes in the average price
of the means of subsistence, such as are produced, for instance, by the
development of agriculture, by taxation etc. Transitory fluctuations,
such as result, for instance, from a single good or bad harvest, cannot
have this result.[164-3] It is, in poor countries at least, one of the
worst effects of a bad harvest, that it tends to positively lower the
rate of wages. A multitude of persons who would otherwise be able to
purchase much labor are now deterred from doing so, by the enhancement
of the price of food.[164-4] On the other hand, the supply increases:
many men who before would not work even for money, see themselves now
compelled to do so. Those who have been workmen hitherto are compelled
by want to make still greater exertions.[164-5]
In very cheap years, all this is naturally reversed.[164-6]
[Footnote 164-1: According to _McCulloch_, Edition of _Adam
Smith_, 472, the food of a day laborer's family constitutes
between 40 and 60 per cent. of their entire support. In the
case of Prussian field hands, it is generally 54 per cent.
greatest in the province of Saxony, viz., 58 per cent. and
lowest in Posen, 43 per cent. Compare _Rau_, Lehrbuch, I, §
191. This may serve as a point of departure, from which to
measure the influence of a given enhancement of the price of
corn. In opposition to _Buchanan_ (Edition of _Adam Smith_,
1817, 59), who had denied the influence of the price of the
means of subsistence on the rate of wages, see _Ricardo_,
Principles, ch. 16.]
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