The Forgotten Man, and Other EssaysSumner, William Graham
Science
The Forgotten Man, and Other Essays
Sumner, William Graham
Economics; Social sciences
49. One point, however, and the most important of all, remains to be
noticed. How about the thousandth tax? How is it when the boot man
wants boots, and the hat man hats, and the cloth man cloth? He has to
go to the store on the street and buy of his own boss, at the market
price (tax on), the very things which he made himself in the shop. He
then pays the tax to his own employer, and the employer, according to
the doctrine, “shares” it with him. Where is the offset to that part
which the employer keeps? There is none. The wages class, even on the
protectionist explanation, may give or take from each other, but to
their own employers they give and take not. At election time the boss
calls them in and tells them that they must vote for protection or he
must shut up the shop, and that they ought to vote for protection,
because it makes their wages high. If, then, they believe in the
system, just as it is taught to them, they must believe that it causes
him to pay them big wages, out of which they pay back to him big taxes,
out of which he pays them a fraction back again, and that, but for this
arrangement, the business could not go on at all. A little reflection
shows that this just brings up the question for a wage-earner: _How
much can I afford to pay my boss for hiring me?_ or, again, which is
just the same thing in other words: _What is the net reduction of my
wages, below the market rate under freedom, which results from this
system?_ (See § 65.)
50. Let it not be forgotten that this result is reached by accepting
protectionism and reasoning forward from its doctrines and according
to its principles. In truth, the employees get no share in any taxes
which the boss gets out of them and others (see § 91 ff. for the truth
about wages). Of course, when this or any other subject is thoroughly
analyzed, it makes no difference where we begin or what line we follow,
we shall always reach the same result if the result is correct. If
we accept the protectionist’s own explanation of the way in which
protection raises wages we find that it proves that protection lowers
wages.
(_H_) EXAMINATION OF THE PROPOSAL TO PREVENT COMPETITION BY FOREIGN
PAUPER LABOR.
51. The protectionist says that he does not want the American laborer
to compete with the foreign “pauper laborer” (see § 99). He assumes,
that if the foreign laborer is a woolen operative, the only American
who may have to compete with him is a woolen operative here. His
device for saving our operatives from the assumed competition is to
tax the American cotton or wheat grower on the cloth he wears, to make
up and offset to the woolen operative the disadvantage under which he
labors. If then, the case were true as the protectionist states it,
and if his remedy were correct, he would, when he had finished his
operation, simply have allowed the American woolen operative to escape,
by transferring to the American cotton or wheat grower the evil results
of competition with “foreign pauper labor.”
Public-domain text, read in full here on John Shaqi.
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