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
If this be true, it is in accordance with strict competitive principles
that, as the elite of the trade, they should get higher wages than those
outside. Moreover the unions exist mainly in the more populated places
where cost of living, wages, and all prices range higher than in the
towns. A much higher standard of work prevails in the cities, both among
union and non-union men, and the old men and the inefficient drift away
to the smaller towns and the places where wages are lower. Many of the
differences are explicable without taking any account of the union. So
far as unions tend toward intelligence, education, sobriety, efficiency,
fuller and fairer competition, they are economic factors in all branches
of industry, and it cannot be doubted that they do work in some measure
in all these ways. So far also as they strengthen the bargaining power
of the laborers, or as they can enforce a monopoly of labor in a
particular trade and locality, they can secure the full competitive or
even a monopoly price.
[Sidenote: Labor organizations a minor factor in lifting the mass of the
workers]
[Sidenote: The chief factors determining wages]
3. _Wages viewed in general industry, and in the long run, are
determined mainly by impersonal economic forces._ That implies the
converse, that they are not determined mainly by the trade-unions. This
statement, in fact, is admitted in calmer moments by the extreme
partisans of the unions. Even the book before quoted says somewhat
vaguely that "it is an error to think that the trade-union seeks to
determine the rate of wages. It cannot do that. It can do no more than
affect them." Again it says: "Capital is increasing faster than
population.... It seems therefore merely in obedience to natural laws
that wages should rise." Men can easily see personal and immediate
results. They cannot follow out the impersonal and ultimate workings of
economic forces. The leaders make exaggerated claims; laborers believe
them and pay their dues more readily; the public believes them and is
the more inclined to pardon the excesses of so important an institution.
That wages in a number of special trades are raised in a considerable
degree cannot be questioned. The open or secret use of violence and
other antisocial forces make much of this boasted service to some of the
workers, an injury to others, and an occasion of reproach from the
citizen who condemns the spirit of lawlessness thus encouraged. The
chief factors tending to raise the general standard of wages are the
productiveness of industry, peace, order, and security to wealth,
honesty in man and master, in lawmaker and in judge, the efficiency and
intelligence of the workers, and an earnest effort on their part to get
the share that competition would accord them. Chiefly, though not
exclusively, because of their bearing on this last factor, trade-unions
have a useful, even though subordinate, part in the regulating of wages
over the whole field of employment.
Public-domain text, read in full here on John Shaqi.
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