Progress and Poverty, Volumes I and II: An Inquiry into the Cause of Industrial Depressions and of Increase of Want with Increase of WealthGeorge, Henry
General
Progress and Poverty, Volumes I and II: An Inquiry into the Cause of Industrial Depressions and of Increase of Want with Increase of Wealth
George, Henry
Economics; Single tax
But, while a change in the rate of wages in any particular occupation
may induce a change in the relative demand for labor, it can produce
no change in the aggregate demand. For instance, let us suppose that
a combination of the workmen engaged in any particular manufacture
raise wages in one country, while a combination of employers reduce
wages in the same manufacture in another country. If the change be
great enough, the demand, or part of the demand, in the first country
will now be supplied by importation of such manufactures from the
second. But, evidently, this increase in importations of a particular
kind must necessitate either a corresponding decrease in importations
of other kinds, or a corresponding increase in exportations. For, it
is only with the produce of its labor and capital that one country
can demand, or can obtain, in exchange, the produce of the labor and
capital of another. The idea that the lowering of wages can increase,
or the increase of wages can diminish, the trade of a country, is as
baseless as the idea that the prosperity of a country can be increased
by taxes on imports, or diminished by the removal of restrictions on
trade. If all wages in any particular country were to be doubled, that
country would continue to export and import the same things, and in
the same proportions; for exchange is determined not by absolute, but
by relative, cost of production. But, if wages in some branches of
production were doubled, and in others not increased, or not increased
so much, there would be a change in the proportion of the various
things imported, but no change in the proportion between exports and
imports.
While most of the objections made to the combination of workmen for
the advance of wages are thus baseless, while the success of such
combinations cannot reduce other wages, or decrease the profits of
capital, or injuriously affect national prosperity, yet so great are
the difficulties in the way of the effective combinations of laborers,
that the good that can be accomplished by them is extremely limited,
while there are inherent disadvantages in the process.
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