The Principles of Economics, with Applications to Practical ProblemsFetter, Frank A. (Frank Albert)
General
The Principles of Economics, with Applications to Practical Problems
Fetter, Frank A. (Frank Albert)
Economics
This fact does not force to the conclusion that industrial inequality as
it exists to-day, the great disparity of incomes, correctly or justly
reflects the degree of difference in men's qualities, either native or
acquired. It does not follow that a thousand-dollar income represents
ten times the ability of a hundred dollar one--far from it. But to those
who ignore the inequality of men, the whole problem of industrial
remuneration must remain a mystery. A crude socialism is possible only
to those who are blind to the enormous differences in human capacity.
[Sidenote: Scarcity of labor is essential to wages]
[Sidenote: Unlimited demand for labor]
7. _The scarcity of human services, relative to wants, is the
fundamental fact in the problem of wages._ It is clearly seen that some
qualities of service are scarce. Most women will confess that they
cannot warble as Patti could, most men will admit that they have not the
mercantile ability of John Wanamaker. The man of mediocre capacity
recognizes even through the fog of his self-esteem that there is a
reason for the high value of certain rare services. But it must also be
recognized that the commonest services have value only because they are
scarce. There are many things to be done if there were labor enough to
do them. There is no need to "make work," in the popular sense; it is
here, but labor is lacking to do it. It is true there may be a temporary
superfluity of human labor at a time of an industrial crisis. There is
at all times a superfluity of "useless" human agents whose qualities are
such that they have no net utility. The ignorant, insane, feeble-minded,
vicious, drunken, and debauched, can give to the world only negative
utilities. But services that are in any degree useful are nearly always
in demand, and the higher services are so rare that they are in great
demand. The proverb, "There's always room at the top," is seen to be
true when conditions are thus analyzed. There is a large, though
limited, supply of the commoner kinds of services at the bottom of the
scale, but in every branch of human effort there is a never-ending lack
of that higher qualification and training required for the best
results.
CHAPTER 21
THE SUPPLY OF LABOR
§ I. WHAT IS A DOCTRINE OF POPULATION?
[Sidenote: The employer's and the social view of supply of labor]
Public-domain text, read in full here on John Shaqi.
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