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
3. _Contract wages, paid by an employer, rest on the same cause of
value, the direct or indirect effect of labor in the gratifying of
wants._ When contract wages come to be spoken of, the personal element
of bargaining between man and man comes in to obscure somewhat the
impersonal causes that are operating. If the fisher and the miner bring
their products to the general markets, the impersonal part of the
problem is uppermost and the wages are recognized to be the market value
of the material products. But if an employer hires a number of workmen,
and the labor of each becomes merged and lost to view in a complex
product, the uncritical mind stops, loses all hold on a guiding
principle of value, and sees only the superficial fact of a personal
bargain between employer and workman. Such a view overlooks the logical
cause of value, and the network of impersonal forces which enwraps and
binds the personal acts.
[Sidenote: A single direct personal service]
To begin with the simplest case: workers often are temporarily employed
to produce for others means of gratification at once consumed. The
barber shaves his patron, the ferryman takes the traveler across the
river, the boy carries a message, the surgeon sets a broken bone. Each
performs a useful service, but produces no long-abiding material result
outside of the beneficiary, and no separable, salable material good.
When each is paid according to the value of the gratification afforded,
the first step is taken toward the regular contract-wage relation
between man and man.
[Sidenote: The continued wage contract for personal services]
In ordinary domestic service the only condition not present in the
cases just given is the more abiding character of the contract relation.
The employer does not hire a coachman each time he wishes to take a
ride, but having summed up the advantages of a coachman's services, he
buys them by the month or the year. The price is determined in the
market for coachmen of the needed ability, qualities ranging from stupid
to bright, from weak to strong, and from drunk to sober. Instead of
buying flowers from day to day, a wealthy man hires a gardener to
cultivate them in a conservatory. The average market price of flowers
influences the wages paid to the gardener, his wages being but the sum
of the values (or of his contribution to the values) of flowers,
well-kept lawn, and garden products. According to the conditions of each
household and of the general market, the one or the other mode of buying
these utilities is the more advantageous.
[Sidenote: Labor employed on products exchanged]
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