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 vary with abilities employed._—The variation of wages among
different classes of workmen in the same calling is universally recognized
as dependent upon the powers employed. The strictly operative labor is
usually paid by the hour, day or week, the terms varying with the supposed
strength or skill exerted. Executive duties commanding monthly or yearly
salaries vary with the total amount of responsibility implied, the large
establishment requiring greater abilities than the small one. The strain
of responsibility increases in some degree with the number of operative
laborers employed, and successful oversight of many hands may be essential
to their profitable employment. In that case the salary of the overseer
gains something of the nature of profits, since the manager gauges the pay
by profits expected. If, as in great stock companies, a manager is hired
at a stipulated salary, his personal abilities, as tested by
accomplishment, are likely to be the sole gauge of wages. A successful
manager of a great enterprise can scarcely be said to have a market price
for his services, but will estimate himself in large measure by the
profits he might secure as an independent business man. Within limits,
such salaries will vary with the experience and inventive ability
required.
_Supply and demand in wages._—Wages in general are subject as truly to the
law of supply and demand as are the products of labor. If few places are
vacant and many applicants seek those places, it is impossible to prevent
the reduction of wages through the anxiety of some applicants to secure
places. On the other hand, if few applicants seek the places open to many,
each will find the employer most willing to give an increase of wages for
his work. Laws cannot prevent such natural competition, though they may
hinder it. Even organization under secret bonds can only temporarily
restrain. Human nature is stronger than any arbitrary restriction.
In general, then, wages in any particular occupation may be affected
directly by limited competition. Any necessity for peculiar abilities of
body or mind, or for preparation by education or training, makes certain,
as far as it goes, a limited competition, and therefore the opportunity
for higher than ordinary wages. In the same way, if unavoidable hardships
or dangers are involved, comparatively few workers will seek such
employment and can have larger pay. If, however, the dangers carry with
them a stimulating excitement and exhibition of daring, arousing
admiration for the worker, this may offset entirely the effect of the
danger.
Soldiers and railroad employés for such reasons do not command pay in
proportion to the dangers met. Any employment where there are obstacles to
natural advancement or where continuance is uncertain does not attract
applicants except by higher wages. Illustrations of all these occasions
for limited competition are found everywhere.
Public-domain text, read in full here on John Shaqi.
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