The Place of Science in Modern Civilisation, and Other EssaysVeblen, Thorstein
Philosophy
The Place of Science in Modern Civilisation, and Other Essays
Veblen, Thorstein
Economics; Science
But, while the wages are not equal to or directly comparable with the
disutility of the productive labor engaged, they are, in Mr. Clark's
view, equal to the "productive efficiency" of that labor.[18]
"Efficiency in a worker is, in reality, power to draw out labor on the
part of society. It is capacity to offer that for which society will
work in return." By the mediation of market price, under competitive
conditions, it is held, the laborer gets, in his wages, a valid claim on
the labor of other men (society) as large as they are competitively
willing to allow him for the services for which he is paid his wages.
The equitable balance between work and pay contemplated by the "natural"
law is a balance between wages and "efficiency," as above defined; that
is to say, between the wages of labor and the capacity of labor to get
wages. So far, the whole matter might evidently have been left as
Bastiat left it. It amounts to saying that the laborer gets what he is
willing to accept and the consumers give what they are willing to pay.
And this is true, of course, whether competition prevails or not.
What makes this arrangement just and right under competitive conditions,
in Mr. Clark's view, lies in his further doctrine that under such
conditions of unobstructed competition the prices of goods, and
therefore the wages of labor, are determined, within the scope of the
given market, by a quasi-consensus of all the parties in interest. There
is of course no formal consensus, but what there is of the kind is
implied in the fact that bargains are made, and this is taken as an
appraisement by "society" at large. The (quasi-) consensus of buyers is
held to embody the righteous (quasi-) appraisement of society in the
premises, and the resulting rate of wages is therefore a (quasi-) just
return to the laborer.[19] "Each man accordingly is paid an amount that
equals the total product that he personally creates."[20] If competitive
conditions are in any degree disturbed, the equitable balance of prices
and wages is disturbed by that much. All this holds true for the
interest of capital, with a change of terms.
Public-domain text, read in full here on John Shaqi.
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