The Forgotten Man, and Other EssaysSumner, William Graham
Science
The Forgotten Man, and Other Essays
Sumner, William Graham
Economics; Social sciences
48. We will, however, pursue the protectionist doctrine of wages a
little further. It is totally false that protective taxes raise wages.
As I will show further on (§ 91 and following), protective taxes lower
wages. Now, however, I am assuming the protectionist’s own premises and
doctrines all the time. He says that his system raises wages. Let us
go to see some of the wages class and get some evidence on this point.
We will take three wage-workers, a boot man, a hat man, and a cloth
man. First we ask the boot man, “Do you win anything by this tariff?”
“Yes,” he says, “I understand that I do.” “How?” “Well, the way they
explain it to me is that when anybody wants boots he goes to my boss,
pays him more on account of the tax, and my boss gives me part of it.”
“All right! Then your comrades here, the hat man and the cloth man, pay
this tax in which you share?” “Yes, I suppose so. I never thought of
that before. I supposed that rich people paid the taxes, but I suppose
that when they buy boots they must do it too.” “And when you want a
hat you go and pay the tax on hats, part of which (as you explain
the system) goes to your friend the hat man; and when you want cloth
you pay the tax which goes to benefit your friend the cloth man?” “I
suppose that it must be so.” We go, then, to see the hat man and have
the same conversation with him, and we go to see the cloth man and
have the same conversation with him. Each of them then gets two taxes
and pays two taxes. Three men illustrate the whole case. If we should
take a thousand men in a thousand industries we should find that each
paid nine hundred and ninety-nine taxes, and each got nine hundred and
ninety-nine taxes, if the system worked as it is said to work. What is
the upshot of the whole? Either they all come out even on their taxes
paid and received, or _some of the wage receivers are winning something
out of other wage receivers to the net detriment of the whole class_.
If each man is creditor for nine hundred and ninety-nine taxes, and
each debtor for nine hundred and ninety-nine taxes, and if the system
is “universal and equal,” we can save trouble by each drawing nine
hundred and ninety-nine orders on the creditors to pay to themselves
their own taxes, and we can set up a clearing house to wipe off all the
accounts. Then we come down to this as the net result of the system
when it is “universal and equal,” that _each man as a consumer pays
taxes to himself as a producer_. That is what is to make us all rich.
We can accomplish it just as well and far more easily, when we get up
in the morning, by transferring our cash from one pocket to the other.
Public-domain text, read in full here on John Shaqi.
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