The Forgotten Man, and Other EssaysSumner, William Graham
Science
The Forgotten Man, and Other Essays
Sumner, William Graham
Economics; Social sciences
101. The taxes which are laid for protection must come out of somebody.
As I have shown (§§ 32 ff.) the protected interests give and take
from each other, but, if they as a group win anything, they must
win from another group, and that other group must be the industries
which are not and cannot be protected. In England these were formerly
manufactures and they were taxed, under the corn laws, for the benefit
of agriculture. In the United States, of course, the case must be
complementary and opposite. We tax agriculture and commerce to benefit
manufactures. Commerce, _i.e._, the ship-building and carrying trade,
has been crushed out of existence by the burden (§ 86). But the burden
thus thrown on agriculture and commerce lowers the gains of those
industries, lessens the attractiveness of them to the laborer, lessens
the value of the laborer’s other chance, lessens the competition of
other American industries with manufacturing, and so, by taking away
from the blessing which God and nature have given to the American
laborer, enable the man who wants to hire his services to get them at a
lower rate. The effect of taxes is just the same as such a percentage
taken from the fertility of the soil, the excellence of the climate,
the power of tools, or the industrious habits of the people. Hence it
reduces the average comfort and welfare of the population, and with
that average comfort it carries down the wages of such persons as work
for wages.
(_C_) PERILS OF STATISTICS, ESPECIALLY OF WAGES.
102. Any student of statistics will be sure to have far less trust in
statistics than the uninitiated entertain. The bookkeepers have taught
us that figures will not lie, but that they will tell very queer
stories. Statistics will not lie, but they will play wonderful tricks
with a man who does not understand their dialect. The unsophisticated
reader finds it difficult, when a column of statistics is offered to
him, to resist the impression that they must prove _something_. The
fact is that a column of statistics hardly ever proves anything. It
is a popular opinion that anybody can use or understand statistics.
The fact is that a special and high grade of skill is required to
appreciate the effect of the collateral circumstances under which
the statistics were obtained, to appreciate the limits of their
application, and to interpret their significance. The statistics which
are used to prove national prosperity are an illustration of this, for
they are used as absolute measures when it is plain that they have no
use except for a comparison. Sometimes the other term of the comparison
is not to be found and it is always ignored (§ 52).
Public-domain text, read in full here on John Shaqi.
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