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
Society is waiting only to settle the best form of a court of arbitration
for labor difficulties. The trend of popular judgment is in favor of a
well-organized commission, having the dignity if not the authority of a
supreme court. That such commissions have not generally come up to the
ideal is due largely to political influence among leaders of
organizations, so that the commissioners become the choice of a faction
rather than of the people. It is conceivable that the functions of judges
in a series of state courts may be so enlarged under carefully framed laws
as to include the duty of arbitration in labor contests.
If the people are not yet ready for compulsory settlement of such
questions, the time is surely coming, under the enormous aggregation of
industries and the immense combination of employés, when the judgment of
the people expressed in due form of law will control both employer and
employé. The whole world is recognizing methods of arbitration as better
than warfare. It will soon insist that these minor wars within the
commonwealth shall cease.
_Profit-sharing._—Some general system of preventing antipathy between
profit-makers and wage-earners seems desirable. Certain interests are
known to be mutual, and both employers and employed welcome any system by
which those mutual interests can further the success of the business.
Among the methods proposed, and sometimes successfully employed, the most
prominent is profit-sharing. This implies on the part of employers after
payment of current wages a distribution, at stated times, far enough apart
to secure a fair average in the profit and loss account, of some portion
of net profits among all the wage-earners. The per cent of net profits to
be thus distributed is matter of agreement, and the basis of distribution
is naturally the scale of wages accepted by the employés in their contract
for employment. The particular methods of applying these principles vary
with circumstances, but in all cases depend upon the actual confidence of
employés in their employers. The effects seem to be good, bad or
indifferent, in proportion to the general intelligence and stability of
the employés. With really skilled workmen, established in homes and
feeling responsibility as citizens, profit-sharing stimulates to the
highest energy. With weak and irresponsible wage-earners it is likely to
bring waste and sometimes false notions in regard to wealth production.
Public-domain text, read in full here on John Shaqi.
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