The impending crisis : $b conditions resulting from the concentration of wealth in the United StatesBouroff, Basil A.
History
The impending crisis : $b conditions resulting from the concentration of wealth in the United States
Bouroff, Basil A.
Trusts, Industrial; United States -- Economic conditions; Wealth
When all the available data of the Eleventh Census were published, Dr.
Spahr started to estimate the total income of the nation for the year
1890. In estimating it he found out that the total income of the
manufacture and mechanical trades alone amounted to $2,790,000,000,
including their net profits of $1,116,000,000 for the year. The total
number of persons engaged in these trades was 5,091,000, of whom
4,650,000 were wage-earners, while the remaining 441,000 were officers,
firm members and clerks. Disregarding these, the average of actual wages
of the wage-earners for the year was $360. After that year these meager
wages, by reduction and unemployment, “had decreased 25 per cent,” says
Dr. Spahr.[137]
But if we regard the average reduction of these wages at 10 cents a day
only, and the average labor year at 250 days, leaving thus [SN: SPECIAL
LOSSES OF THE WAGE-EARNERS.] a sufficient room for unemployment, we then
find that the 4,650,000 wage-earners were losing $116,250,000 every
year. And distributing the same losses over seven years, they have lost
$813,750,000 worth of their energy in favor of the trusts and
combinations. The losses, however, have been greater than this amount,
although we consider only this minimum, which is simply an increase in
the injustice brought about by the principle of dividogenesure.
But while the real producers of wealth thus constantly lose their energy
in products, the net profits of the trusts of these industries for the
year 1890 amounted to $1,116,000,000.[138] This great yearly income [SN:
NET INCOMES OF THE TRUSTS.] excludes all expenses, and excludes even the
yearly waste of machinery, tools, and of the other capital used in
operations. Obtaining such profits seven times in seven years, these
trusts have profited themselves by about $7,812,000,000. And these
enormous profits accrued to them for nothing more than the trouble of
buying the machinery and other capital that the real producers of wealth
operated upon, mostly under hired supervision. And while the human and
mechanical forces work out these results, the real beneficiaries do
nothing but speculate on the ways of concentrating the entire increase
of wealth to their hands.
The speculative efficiency of these trusts and the profound injustice of
it will be more apparent, if we remember that these profits do, not only
imply the systematic extortion of the crystallized energy of the real
producers of wealth by means of exorbitancy in dividogenesure, but they
imply a similar extortion from the public at large, which consume the
products of these industries for excessive payments.
Public-domain text, read in full here on John Shaqi.
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