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
1. _The self-employed laborer earns wages in the broad economic sense._
In this sense the isolated workman, Robinson Crusoe on his island, earns
wages, but these wages could not be measured at all exactly. They are a
part of an indivisible income, and there is no way to determine how much
should be attributed to the uses of the wealth employed and how much to
the labor. The independent farmer, producing on his own farm nearly
everything he consumes, may be said to earn wages in the broad sense.
These can, moreover, be estimated, because they can be compared with
what he could get by working for some one else. The farmer, therefore,
attributes a certain part of his income to the farm as rent and a
certain part to his own labor as wages.
[Sidenote: Wages of the self-employed exchanging worker]
2. _The wages of self-employed labor are often simply the value of the
material product it secures by exchange._ Labor has value indirectly
because embodied in products. The worker value of these products is
reflected to the labor which secures them. The wages of the fisherman
day by day, as he follows his vocation, are simply the market value of
the fish he catches day by day. The gold-miner, working with simple
tools in the days of placer-mining, earned wages exactly expressed by
the gold he washed out.
The independent worker with few tools does not think of attributing any
considerable part of his income to his tools. The umbrella-mender's
"kit" is so small that his true wage is little less than his total
receipts. The tinker, the shoemaker, and the tailor, who went from house
to house in the old days, thought only in the vaguest way of marking off
from their incomes a part to be counted as the rent of their little
outfit of tools. Until very recent times the capital invested in tools
commonly was small, and usually was owned by the handworker who thus
received an undivided income, of which wages were by far the larger
part. It was inevitable, therefore, that labor alone should have been
thought of as the cause of the value of goods produced by the artisans
in the towns and cities. This error, small at first, was magnified as
the capital investment of modern industry grew, and it persists in many
fallacious notions that still taint modern economic theory.
[Sidenote: Both impersonal and personal causes of contract wages]
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account