The Forgotten Man, and Other EssaysSumner, William Graham
Science
The Forgotten Man, and Other Essays
Sumner, William Graham
Economics; Social sciences
Anyone who has read with attention the current discussion of labor
topics must have noticed that writers start from assumptions, in regard
to the doctrine of wages, which are as divergent as notions on the same
subject-matter well can be. It appears, therefore, that we must have
a dogma of wages, that we cannot reason correctly about the policy or
the rights of the wages system until we have such a dogma, and that, in
the meantime, it is not strange that confusion and absurdity should be
the chief marks of discussion carried on before this prime condition is
fulfilled.
Some writers assume that wages can be raised if the prices of products
be raised, and that no particular difficulty would be experienced
in raising prices; others assume that wages could be raised if the
employers would be satisfied with smaller profits for themselves;
still others assume that wages could be raised or lowered according
as the cost of living rises or falls. These are common and popular
assumptions, and have nothing to do with the controversies of
professional economists about the doctrine of wages. The latter are a
disgrace to the science, and have the especial evil at this time that
the science cannot respond to the chief demand now made upon it.
If the employer could simply add any increase of wages to his prices,
and so recoup himself at the expense of the consumer, no employer would
hold out long against a strike. Why should he? Why should he undertake
loss, worry, and war, for the sake of the consumers behind him? If
an employer need only submit to a positive and measurable curtailment
of his profits, in order to avoid a strike and secure peace, it is
probable that he would in almost every case submit to it. But if the
employees should demand five per cent advance, and the employer should
grant it, adding so much to his prices, they would naturally and most
properly immediately demand another five per cent, to be charged to
the consumers in the same way. There would be no other course for men
of common sense to pursue. They would repeat this process until at
some point or other they found themselves arrested by some resistance
which they could not overcome. Similarly, if wages could be increased
at the expense of the employer’s gains, the employer who yielded one
increase would have to yield another, until at some point he decided to
refuse and resist. In either case, where and what would the limit be?
Whenever the point was reached at which some unconquerable resistance
was encountered, the task of the economist would begin.
There is no rule whatever for determining the share which any one ought
to get out of the distribution of products through the industrial
organization, except that he should get all that the market will
give him in return for what he has put into it. Whenever, therefore,
the limit is reached, the task of the economist is to find out the
conditions by which this limit is determined.
Public-domain text, read in full here on John Shaqi.
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