Principles of Political Economy, Vol. 2Roscher, Wilhelm
General
Principles of Political Economy, Vol. 2
Roscher, Wilhelm
Economics
In very low stages of civilization, where there is scarcely any such
thing as rent, and where capital is extremely rare, the wages of labor,
notwithstanding its small amount absolutely speaking, must eat up the
greatest part of the product.[171-1] With every further advance, the
condition of the laboring class is modified, according as the natural
decline in this relative amount of their wages is outweighed or
counterbalanced, or neither outweighed nor counterbalanced, by the
increase in the aggregate product; in other words, in the national
income in general as compared with the number of workmen.
[Footnote 171-1: _Adam Smith_, Wealth of Nat., I, ch. 8.
Thus in the case of nations of hunters. The wages of free
laborers in Russia, at the beginning of this century, were
so high that mowers, in the vicinity of Moscow, received a
good half of the corn mowed by them, (_von Schlözer_,
Aufangsgründe, I, 65.) As a rule, the natural relation of
the three branches of income is here postponed by the
intervention of slavery. (§ 76, 155.) But, for instance,
since the negroes have been emancipated, in the southern
states of the American Union, it has become necessary to
promise them one-half of the cotton crop as wages, and for
the employer to run all the risk of a bad harvest. (_R.
Somers_, The Southern States since the War, 1871.) On the
wretched pay of domestic servants in the middle ages, see
_Grimm_, D. Rechtsalterth., 357.]
SECTION CLXXII.
HISTORY OF THE WAGES OF COMMON LABOR.--IN FLOURISHING TIMES.
When, where a nation's economy[172-1] is growing and flourishing,
capital increases more rapidly than population, there is a search for
employment by capital still greater than the search for employment by
labor. The consequence is, of course, a decline in the rate of interest,
and a rise in the rate of the wages of labor, although the latter may be
compelled to surrender a part of its increase to rent, which also rises.
If simultaneously with these phenomena, there have been great advances
made in national productive skill, especially in the cultivation of
land; if, therefore, labor and the capital consumed have become more
prolific, the condition of the laboring class is improved in a two-fold
manner; the condition of capitalists needs, to say the least, grow no
worse, and the increase of rent paid to landowners may be
avoided.[172-2]
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