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
The least efficient men in any trade always suffer most. The change
crushes hardest the man at the margin of employment. The more skilled
workman can hasten his pace and still earn a living wage in competition
with a machine, while the less skilled can but drop out entirely,
innocent victims of an economic change, sacrifices to the cause of
industrial progress. Happily such pathetic incidents are relatively not
numerous. Most machinery is introduced in commercial centers, and
gradually spreads to other factories in such a way that most men can
adapt themselves to the change. The effect of machinery must not be
judged by the extreme cases. It was found that there were more
hand-looms in use in England in 1850 than fifty years before, though in
the meantime power-looms had displaced the hand-looms in all the great
factories.
[Sidenote: Error of the "lump of labor" notion]
2. _After time for adjustment, the total sum of employment is as great
as before, but the labor is differently distributed._ The "lump of
labor" idea, as it is called, is widely held, especially among
workingmen. The notion is that there is exactly so much labor
predetermined to be done; therefore, if machines are introduced, there
is that much less for men to do. The logical conclusion easily drawn is
that every machine reduces wages. Few, however, would go on to the
further conclusion that in the aggregate the existing machinery,
like an enormous vampire, is sucking the life-blood of the
working-people,--though traces of such a notion frequently appear.
[Sidenote: Effect of machinery varies in different industries]
Public-domain text, read in full here on John Shaqi.
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