Rural Wealth and Welfare: Economic Principles Illustrated and Applied in Farm LifeFairchild, Geo. T. (George Thompson)
Science
Rural Wealth and Welfare: Economic Principles Illustrated and Applied in Farm Life
Fairchild, Geo. T. (George Thompson)
Agriculture -- Economic aspects; Economics
_Wages, profits, interest and rent take the product._—It is common to
consider distribution as made in the forms of wages for labor given
without risk as to the product, profits to the one whose labor is
associated with risk of loss as well as gain, interest to the one who
furnishes capital in any form and waits for his compensation, and rent to
the landlord, or owner of estate, whose property is used for a definite
time and returned. It is evident that any advantage received in any of
these ways, at any time, must come from the actual available goods in
store suitable for division and consumption. The farmer cannot pay his
hired hand with his farm, though he may be able to do so with his
products. The farmer himself cannot realize his profits until he has the
proceeds of his work in the shape of consumable goods. So, at any
particular time, the total of products fit for consumption makes the
source from which all distribution must come. Debts and credits can have
no consideration in the total, for the reason that they exactly offset
each other. A general conflict of interested persons as to wages, profits,
interest or rent comes from the difficulty of sharing in the actual goods
at hand. The relation of each to the whole depends upon circumstances to
be discussed in future chapters. It is certain that the larger proportion
of daily production goes to the mass of the people who consume their share
from day to day. It is estimated that fully 80 per cent of such wealth is
used up by those who contribute no use of capital to the productive force.
It seems probable also that this ratio is increasing rather than
diminishing, but no statistics are sufficient to show the exact facts.
_Cheap standards of living._—In the natural competition of laborers with
each other, the general standard of living—physical, intellectual and
moral—have an important bearing. The Chinaman in this country competes
with the American upon a wholly different plane of living. His habitual
needs being less, he is willing to work for wages that will not tempt the
native American. If he can do the same work, living as he does, he
necessarily becomes a cheaper force in production, and the American must
find a better field for his energies or go without employment. Under
ordinary circumstances, the introduction of laborers able to live more
cheaply acts upon the better class of laborers exactly like the
introduction of labor-saving machinery. It first brings hardship from
direct competition, but the cheapening of products brings enlarged demands
and so gives new impetus to production, requiring the very skill which the
better class of laborers alone can furnish.
Public-domain text, read in full here on John Shaqi.
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