Principles of Political Economy, Vol. 2Roscher, Wilhelm
General
Principles of Political Economy, Vol. 2
Roscher, Wilhelm
Economics
In the case of a commodity as universally desired as human labor is, the
idea of the purchasers' capacity to pay (solvability) must be nearly
commensurate with the national income, or to speak more correctly, with
the world's income.[166-1] In regard to the different kinds of labor,
and especially to common labor, it is evident that the different kinds
of consumption require very different quantities of them. Here,
therefore, we depend on the direction which national consumption takes,
and this in turn is most intimately related to the distribution of the
national income.[166-2] If all workmen were employed in nothing but the
production of articles consumed by workmen, the rate of wages would be
determined almost exclusively by the ratio between the number of the
working population and the amount of the national income. But, if this
were the case, landowners and capitalists would be obliged to live just
as workmen do, and their highest luxury would have to consist in feeding
idlers. (§ 226). The effect must be much the same, when the wealthy are
exceedingly frugal and employ their savings as rapidly as possible in
the employment of common home labor; while, on the other hand, the
exportation of wheat, wood, and other articles, which the working
classes consume, in exchange for diamonds, lace, champagne, diminishes
the efficient demand for common labor in a country.[166-3]
The assumption frequently made, that the demand for labor depends on the
size of the national capital, is far from exact.[166-4] Thus, for
instance, every transformation of circulating into fixed capital,
especially when the labor used in effecting this transformation is
ended, diminishes the demand for other labor. That principle is not
unconditionally true, even in the case of circulating capital. Thus, for
instance, the rate of wages is wont to be raised by the transfer of
capital from such businesses as require little labor into such as
require much.[166-5] Only that part of circulating capital can have any
weight here which is intended, directly or indirectly, for the purchase
of labor and for the purchase of each kind of labor in particular.[166-6]
The capital of the employer is, by no means, the real source[166-7] of the
wages of even the workmen employed by him, It is only the immediate
reservoir through which wages are paid out, until the purchasers of the
commodities produced by that labor make good the advance, and thereby
encourage the undertaker to purchase additional labor. Correlated to this
is the fact, that other circumstances being the same, those workmen usually
receive the highest wages who have to do most immediately with the
consumer.[166-8]
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