It is true that the enactment of the principles suggested up to this
point would mean the imposition of certain genuine restrictions upon the
actions of those who direct industry, as for example, in connection with
the living wage program. It would give all wage earners the benefits of
organization. It would make for rapid and certain compensation for price
movements. It would prevent wage reductions merely because of the
poverty of any group. Nevertheless, if the analysis of distribution made
earlier in the book is substantially correct, the answer to the question
at the head of this section must be that there would be no very
compelling tendency for distribution to result justly, under the
enforcement of the wage principles so far proposed. The distributive
result would still depend largely upon the reality and intensity of
industrial competition, upon the strength, activity, and foresightedness
of the wage earners' organizations, upon the will and spirit of the
directors of industry, and upon the quality and liveness of public
opinion. That admission can be made, even though it is believed that
under the suggested principles the outcome of distribution would be
nearer the desired outcome than it is at present; and that there would
be a clearer perception of the public interest in the outcome of
distribution than at present.
4.--If a measure could be devised which would help to bring about the
desired distributive outcome, without greatly weakening in some other
direction the policy as already conceived, such a measure would be a
most worth-while addition to the policy. It is possible to discern
clearly what the scope and form of such a measure must be.
Firstly: Such a measure should not single out the profits of particular
enterprises for division or transfer to the wage earners, if the profits
of these particular enterprises are in excess of what is conceived to be
a just profit level for industry as a whole. For, in the first place, if
the principle of standardization is enforced throughout industry, the
excess profits of particular enterprises may frequently be the result of
superior business ability, and to take them away would be to discourage
the development and use of that ability. And, in the second place, even
if it is acknowledged that this is not the true explanation of the great
profits of very many enterprises, but that these are accounted for
rather by the possession of special privileges or the weakness of
competition, nevertheless, to adopt a policy under which these profits
are transferred to the wage earners would lead to wastefulness and
extravagance in business operation. And lastly, there is the fact that
to make wages in any enterprise contingent upon the profit returns of
that enterprise is contrary to the ordinary trade union policy.
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