Three Lectures on the Rate of Wages

第5章

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第5章

Three Lectures on the Rate of Wages Anonymous

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Three Lectures on the Rate of Wages
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  processofcultivationmustbeemployedwhichwillgive,notabsolutelythegreatestamountofproduce,butthegreatestafter

  deductingtheexpenses。Forthispurposeatractoffivehundredacres,fromwhichfiftyfamiliesproducedtheirown

  subsistence,andproducedscarcelyanythingmore,maybeconvertedintoonefarm,andwiththelabouroftenfamilies,and

  asmanyhorses,mayproducethesubsistenceofonlythirtyfamilies。Fortunately,however,theperiodatwhichthese

  alterationstakeplaceisgenerallyoneofgreatsocialimprovement;sothat,afterashortinterval,theincreaseddiligence

  andskillwithwhichlabourisapplied,occasionanincreaseofeventhegrossproduce。Thefundforthemaintenanceof

  labourersnowbecomesincreasedfromtwodifferentsources——partlyfromtheincreasedefficiencyofhumanlabour。when

  aidedbythatofhorsesandcattle,andpartlyfromtheresultsofapartofthehumanlaboursetfreebythesubstitutionof

  brutes。Theultimateconsequencesofsuchachangearealwaysbeneficial;thechange。itselfmust,ingeneral,beaccompaniedbydistress。Butwiththeexceptionofthesetwocases,oneofwhichproducesonlytemporaryeffects,andtheother,though

  :apparently。possible,seemneveractuallytooccur,it。appearstomedearthattheuse。ofmachinerymusteitherrasethegeneralrateofwages,orleaveitunaltered。Whenmachineryisappliedtotheproductionofcommoditieswhicharenotintended,directlyorindirectly,fortheuseof

  labourers,itoccasionsnoalterationinthegeneralrateofwages;——Isaythegeneralrateofwages;becauseitmaydiminish

  therateofwagesinsomeemployments,——adiminution。alwayscompensatedbyacorrespondingincreaseinsomeothers。I

  wasshownatBirminghamasmallscrew,which,inthemanufactureofcorkscrews,performedtheworkoffifty—ninemen;

  withitsassistanceonemancouldcutaspiralgrooveinasmanycorkscrewshanksassixtymencouldhavecutinthesame

  timewiththetoolspreviouslyinuse。Astheuseofcorkscrewsislimited,it。isnotprobablethatthedemandforthemhas

  sufficientlyincreasedtoenablethewholenumberoflabourerspreviouslyemployedintheirmanufacture,toremainso

  employedaftersuchanincreaseintheirproductivepower。Someofthecorkscrew—makers,therefore,musthavebeen

  thrownoutofwork,andtherateofwagesinthattradeprobablyfell。Butasthewholefundforthemaintenanceof

  labourers,andthewholenumberoflabourerstobemaintained,remainedunaltered,thatfallmusthavebeenbalancedbya

  risesomewhereelse——arisewhichwemaytracetoitsproximatecause,byrecollectingthatthefallinthepriceof

  corkscrewsmusthavelefteverypurchaserofacorkscrewafundforthepurchaseoflabour,ratherlargerthanhewouldhavepossessedifhehadpaidtheformerprice。If,however,machinerybeappliedtotheproductionofanycommodityusedbythelabouringpopulation,thegeneralrate

  ofwageswillrise。Thatitcannotfallisclear,onthegroundswhichIhavejuststated。Iftheimprovementbegreat,andthe

  commoditynotsubjecttoacorrespondingincreaseofdemand,someofthelabourersformerlyemployedinitsproduction

  willbethrownoutofemployment,andwages,inthattrade,willfall——afallwhich,asthewholefundforthemaintenance

  oflabourisnotdiminished,mustbemetbyacorrespondingriseinsomeothertrade。Butthefundwillbeincreasedbythe

  additionalquantityproducedofthecommoditytowhichtheimprovementhasbeenapplied:estimatedinthatcommodity,

  therefore,thegeneralrateofwages,or,inotherwords,thequantityofcommoditiesobtainedbythelabouringpopulation,willbeincreasedbytheintroductionofmachinery;estimatedinallothers,itwillbestationary。Theexampletakenfromthemanufactureofcorkscrewsisasunfavourabletotheeffectsofmachineryascanbeproposed;

  fortheuseofthecommodityissupposedtobeunabletokeepupwiththeincreasedproduction,andthewholenumberof

  labourersemployedonitis,consequently,diminished。This,however,isaveryrareoccurrence。Theusualeffectofan

  increaseinthefacilityofproducingacommodityissotoincreaseitsconsumptionastooccasiontheemploymentofmore,notless,labourthanbefore。Ihavealreadycalledyourattentiontotheeffectsofmachineryinthemanufactureofcottonandinprinting。Eachofthese

  tradesprobablyemploystentimesasmanylabourersasitwouldhaveemployedifspinning—jenniesandtypeshadnotbeen

  invented。Undersuchcircumstances(andtheyaretheusualones),thebenefitsofmachineryarenotalloyedbyevenpartialinconvenience。Fifthly。Closelyconnectedwiththismistake,andoccasionedbythesamehabitofattendingonlytowhatistemporaryand

  partial,andneglectingwhatispermanentandgeneral;ofdwellingontheevilthatisconcentrated,andbeinginsensibleof

  thebenefitthatisdiffused,isthecommonerrorofsupposingthatthegeneralrateofwagescanbereducedbythe

  importationofforeigncommodities。Infacttheopeningofanewmarketispreciselyanalogoustotheintroductionofa

  newmachine,exceptthatitisamachinewhichitcostsnothingtoconstructortokeepup。Iftheforeigncommoditybenot

  consumedbythelabouringpopulation,itsintroductionleavesthegeneralrateofwagesunaffected;ifitbeusedbythem,

  theirwagesareraisedasestimatedinthatcommodity。IftheabsurdlawswhichfavourthewinesofPortugaltothe

  exclusionofthoseofFrancewererepealed,morelabourerswouldbeemployedinproducingcommoditiesfortheFrench

  market,andfewerforthePortuguese。Wageswouldtemporarilyfallintheonetrade,andriseintheother。Theclear

  benefitwouldbederivedbythedrinkersofwine,who,atthesameexpense,wouldobtainmoreandbetterwine。Soifwhat

  arccalledtheprotectingdutiesonFrenchsilkswereremoved,fewerlabourerswouldbeemployedinthedirectproduction

  ofsilk,andmoreinitsindirectproduction,bytheproductionofthecottons,orhardware,withwhichitwouldbe

  purchased。Thewearersofsilkwouldbetheonlyclassultimatelybenefited;andasthelaboutingpopulationneitherwear

  silknordrinkwine,thegeneralrateofwageswould,inbothcases,remainunaltered。Butifthelawswhichprohibitour

  obtainingonthemostadvantageoustermstea,andsugar,andcorn,werealtered,thatportionofthe。fundforthe

  maintenanceoflabour,whichconsistsofcorn,sugar,andtea,wouldbeincreased。Andthegeneralrateofwages,asestimatedinthethreemostimportantarticlesoffood,wouldberaised。Sixthly。TheviewswhichIhavebeenendeayouringtoexplain,areinconsistentwiththecommonopinion,thatthe

  unproductiveconsumptionoflandlordsandcapitalistsisbeneficialtothelabouringclasses,becauseitfurnishesthemwithemployment。Themaintainersofthistheorymustforgetthatitisnotemployment,butfood,clothing,shelter,andfuel——in

  short,thematerialsofsubsistenceandcomfort,thatthelabouringclassesrequire。Thewordemploymentismerelya

  conciseformofdesignatingtoil,trouble,exposure,andfatigue。Allthese,perse,areevils,andthelessofthemthatis

  requiredforobtainingagivenamountofsubsistenceandcomfort,——or,inotherwords,thegreaterthefacilityofobtaining

  thatgivenamount,——thebetter,caeterisparibus,willbetheconditionofthelabouringclasses;indeed,ofallclassesinthe

  community。Whatoccasionstheprosperityofacolony?Notthedearnessofsubsistence,butitscheapness;notthe

  difficultyofobtainingfood,clothing;shelter,andfuel,butthefacility。Nowhowcanunproductiveconsumptionincrease

  thisfacility?Howcanthefundfromwhichallaretobemaintainedbeaugmentedbythedestructionofaportionofit?If

  thehigherordersweretoreturntothecustomsofacenturyago,andcovertheircoatswithgoldlace,theymightenjoy

  theirownfinery;buthowwouldthatbenefittheirinferiors?ThetheorywhichIamconsidering,repliesthattheywouldbe

  benefitedbybeingemployedinmakingthelace。Itistruethatacoat,insteadofcosting5l。,wouldcost55l。Butwhat

  becomesnowoftheextra50l。?foritcannotbesaidthatbecauseitisnotspentonalacedcoat,itdoesnotexist。Ifa

  landlordwith10,000l。ayearspendsitunproductively,hepaysitawaytothosewhofurnishtheembellishmentsofhis

  houseandgrounds,andsupplyhisstable,hisequipage,andhisclothes。Supposehimnowtoabandonallunproductive

  expenditure,toconfinehimselftobarenecessaries,andtoearnthembyhisownlabour,thefirstconsequencewouldbe,

  thatthoseamongwhomhepreviouslyspenthis10,000l。ayearwouldlosehimasanemployer;andbeyondthisthetheory

  inquestionseesnothing。Butwhatwouldhedowiththe10,000l。whichhewouldstillannuallyreceive?Noonesupposes

  thathewouldlockitupinabox,orburyitinhisgarden。Whetherproductivelyorunproductively,itstillmustbespent。If

  spentbyhimself,asbythesuppositionitwouldbespentproductively,itmustincrease,andeveryyearstillfurtherincrease

  thewholefundapplicabletotheuseoftherestofthecommunity。Ifnotspentbyhimself,itmustbelenttosomeother

  person,andbythatpersonitmustbespentproductivelyorunproductively。Hemight,perhaps,buywithitpropertyinthe

  Englishfunds;butwhatbecomesofitinthehandsoftilepersonwhosellstohimthatfundedproperty?Hemightbuywith

  itFrenchrentes;butinwhatformwouldthepriceofthoserentesgotoParis?——Intheform,aswehaveseen,of

  manufacturedcommodities。Quacunqueviadata,everymanmustspendhisincome;andthelesshespendsonhimself,themoreremainsfortherestoftheworld。Thelasttheory,inconsistentwithmyownviews,towhichIshallcallyourattention,isthatproposedbyMr。Ricardointhefollowingpassage:——\'Thelabouringclasshavenosmallinterestinthemannerinwhichthenetincomeofthecountryisexpended,althoughitshould,inallcases,beexpendedforthegratificationandenjoymentofthosewhoarefairlyentitledtoit。\'Ifalandlord,oracapitalist,expendshisrevenueinthemannerofanancientbaron,inthesupportofagreatnumberof

  retainersormenialservants,hewillgiveemploymenttomuchmorelabourthanifheexpendeditonfineclothesorcostlyfurniture。\'Inbothcasesthenetrevenuewouldbethesame,andsowouldbethegrossrevenue,buttheformerwouldberealizedin

  differentcommodities。Ifmyrevenuewere10,000l。,thesamequantitynearlyofproductivelabourwouldbeemployed,

  whetherIrealizeditinfineclothesandcostlyfurniture,etc。etc。,orin\'aquantityoffoodandclothingofthesamevalue。If,

  however,Irealizedmyrevenueinthefirstsetofcommodities,nomorelabourwouldbeconsequentlyemployed:Ishould

  enjoymyfurnitureandmyclothes,andtherewouldbeanendofthem;butifIrealizedmyrevenueinfoodandclothing,

  andmydesirewastoemploymenialservants,allthosewhomIcouldsoemploywithmyrevenueof10,000l,orwiththe

  foodandclothingwhichitwouldpurchase,wouldbetobeaddedtotheformerdemandforlabourers,andthisaddition

  wouldtakeplaceonlybecauseIchosethismodeofexpendingmyrevenue。Asthelabourers,then,areinterestedinthe

  demandforlabour,theymustnaturallydesirethatasmuchaspossibleshouldbedivertedfromexpenditureonluxuries,tobeexpendedinthesupportofmenialservants。Inthesamemanneracountryengagedinwar,andwhichisunderthenecessityofmainmininglargefleetsandarmies,

  employsagreatmanymorementhanwillbeemployedwhenthewarterminates,andtheannualexpenseswhichitbringswithitcease。IfIwerenotcalleduponforataxof500l。duringthewar,whichisexpendedonmeninthesituationsofsoldiersand

  sailors,Imightprobablyspendthatportionofmyincomeonfurniture,clothes,books,etc。etc。,andwhetheritwas

  expendedintheonewayortheother,therewouldbethesamequantityoflabouremployedinproduction;forthefoodand

  clothingofthesoldierandsailorwouldrequirethesameamountofindustrytoproducethemasthemoreluxurious

  commodities:but,inthecaseofwar,therewouldbetheadditionaldemandformenassoldiersandsailors;and,

  consequently,awarwhichissupportedoutoftherevenue,andnotfromthecapitalofacountry,isfavourabletoanincreaseofpopulation。Attheterminationofthewar,whenpartofmyrevenuerevertstome,andisemployedasbeforeinthepurchaseofwine,

  furniture,orotherluxuries,thepopulationwhichitbeforesupported,andwhichthewarcalledintoexistence,willbecome

  redundant,andbyitseffectontherestofthepopulation,anditscompetitionwithitforemployment,willsinkthevalueofwages,andverymateriallydeterioratetheconditionofthelabouringclasses。\'(4)Mr。Ricardo\'s。theoryis,thatitismorebeneficialtothelabouringclassestobeemployedintheproductionofservicesthan

  intheproductionofcommodities;thatitisbetterforthemtobeemployedinstandingbehindchairsthaninmakingchairs;

  assoldiersorsailorsthanasmanufacturers。Nowasitisclearthatthewholequantityofcommoditiesprovidedfortheuse

  oflabourersisnotincreasedbytheconversionofanartisanintoafootmanorasoldier,eitherMr。Ricardomustbewrong,ormyelementarypropositionisfalse。Mr。Ricardoseemstohavebeenledtohisconclusionsbyobservingthatthewagesofservants,sailors,andsoldiersare

  principallypaidinkind——thoseofartisansinmoney。Hecorrectlystates,thatifamanwith10,000l。a—yearspendshis

  incomeinthepurchaseofcommoditiesforhisownuse,heretains,afterhavingmadethosepurchases,nofurtherfundfor

  themaintenanceoflabour;butthatifhespendsitinthepurchaseofcommoditiestobeemployedinmaintainingmenial

  servants,hehas,inthosepurchasedcommodities,anewfundwithwhichhecanmaintainacertainnumberofmenial

  servants。Itappearedtohim,therefore,thatthelandlordwould,inthelattercase,beabletospendhisincometwiceover;

  tosubsisttwiceasmany。personsasbefore。Itdidnotoccurtohimthatthelandlord,bypurchasinghimselfthesubsistence

  ofhisservants,merelydoesforthemwhattheywouldbeabletodobetter。forthemselves;that,insteadofspendinghis

  ownincometwiceover,hemerelytakesonhimselfthebusinessofspendingtheirsforthem;(5)andthatifheweretogiveto

  hisservantsthevalueoftheirwholesubsistenceinmoney,thewholebodyoflabourerswouldbejustaswellmaintainedas

  inthesupposedcaseofhispurchasingtheirsubsistence,andthengivingittotheminexchangefortheirservices。Noone

  wouldmaintainthatifitwerethepractice,inthiscountry,asitisinIndia,togivetoservantsboardwages,thedemandfor

  labourwouldbelessened;orthatifitwerethepractice,asitisinsemi—barbarouscountries,tomaintainservantsto

  producewithintheirmasterswallsthecommoditieswhichweareaccustomedtopurchasefromshops,thedemandfor

  labourwouldbeincreased。Stilllesscoulditbe。maintained,thatifthoseservants,insteadofproducingcommodities,were

  employedinfollowingtheirmaster\'sperson,ormountingguardbeforehisdoor,suchachangewouldcreateanadditionaldemandformen,andbefavourabletoanincreaseofpopulation。SofaramIfromconcurringinMr。Ricardo\'sopinion,thatitistheinterestofthelabourersthatrevenueshouldbespent

  ratheronservicesthanoncommodities,thatIbelievetheirinteresttobepreciselyopposite。Inthefirstplace,thelabourer

  cangenerallymanagebetterhisownincomethanitcanbemanagedforhimbyhismaster。Ifadomesticservantcouldearn

  aswagesthewholesumwhichhecostshismaster,evenifheweretospenditashereceivedit,hewouldprobablyspendit

  withmoreenjoyment。Secondly,theincomespentonservicesisspentinthepurchaseofwhatperishesattheinstantofits

  creation;thatspentoncommoditiesoftenleavesresultswhich,whentheirfirstpurchaserhasdonewiththem,are

  serviceabletoothers。Inthiscountrythepoorare,toagreatextent,clothedwithgarmentsoriginallyprovidedfortheir

  superiors。Inallthebetterclassofcottagesmaybefoundarticlesoffurniturewhichnevercouldhavebeenmadefortheir

  presentpossessors。Alargeportionofthecommoditieswhichnowcontributetothecomfortofthelabouringclasseswould

  neverhaveexisted,ifithadbeenthefashioninthiscountry,duringthelastfiftyyears,topreferretinueandattendanceto

  durablecommodities。And,thirdly,theincomeemployedoncommoditiesisfavourabletothecreationofbothmaterialand

  immaterialcapital;thatemployedonservicesisnot。Thedutiesofaservantaresoeasilylearned,thathecanscarcelybe

  termedaskilledlabourer:hisaccumulationsaresmallinamount,andseldomturnedtomuchadvantage。Theartisanlearns

  atrade,inwhicheveryyearaddstohisskill,andistaughtmechanicalandchemicalprocesses,oftensusceptibleof

  indefiniteimprovement,andinwhichasingleinventionmayraisetheauthortowealth,anddiffuseprosperityoverawhole

  district,orevenawholenation。Anindustriousartisancanoftensavealargeportionofhisincome,andinvestitwithgreat

  andimmediateprofit。Hepurchaseswithhissavingsasmallstockoftoolsandmaterials,andbythevigilanceandactivity

  whichcanbeappliedonlytoasmallcapital,renderseveryportionofitefficient。Theancestors,andnottheremote

  ancestors,ofsomeofourrichestandourproudestfamilies,theauthorsofsomeofourmostvaluablediscoveries,were

  commonmechanics。Whatmenialservanthasinthiscountry,andinmoderntimes,beenapublicbenefactor,orevenraised

  himselftoaffluence?Bothhistoryandobservationshowthatthosecountriesinwhichexpenditureischieflyemployedinthepurchaseofservicesarepoor,andthoseinwhichitisemployedoncommoditiesarerich。Mr。Ricardo\'stheoryastotheeffectsofwarisstillmorestrikinglyerroneous。Itis,inthefirstplace,opentoallthe

  objectionswhichIhavealreadyopposedtohisviewsrespectingmenialservants。Therevenuewhichisemployedin

  maintainingsoldiersandsailorswould,evenifunproductivelyconsumed,maintainatleastanequalnumberofservantsand

  artisans;andthatportionofitwhichwouldhavebeenemployedinthemaintenanceofartisanswould(aswehaveseen)

  havebeenfarmorebeneficiallyemployed。Thedemandforsoldiersandsailorsisnot,ashetermsit,anadditional,itis

  merelyasubstituteddemand。Butagreatpartofthatrevenuewouldhavebeenproductivelyconsumed。Insteadof

  employingsomelabourersinconvertingsuburbsintofortifications,andforestsintonavies,toperishbydryrotinharbour,orbyexposure。atsea,andothersinwalkingthedeckandparadingontherampart,itwouldhaveemployedtheminaddingmoreandmore

  everyyeartothefundfromwhichtheirsubsistenceisderived。Warismischievoustoeveryclassinthecommunity;butto

  noneisitsuch。acurseastothelabourers。

  THEEND。

  NOTES:

  1。Thisisoneofthemodesinwhichslaverymaybeextinguished,butitisadreadfulabuseoflanguagetocalliteuthanasia。

  2。SeeMr。WilmotHorton\'s\'CausesandRemediesofPauperism,\'fourthseries。

  HieetiamfatisaperitCassandrafuturisOraDeijussunonunquamcreditaTeucris。3。Andyetitappearsnowtobethought,thatwagesmayberaisedbythedestructionor(whatisthesameinimmediate

  effect)thedisuseofmachinesalreadyconstructed。

  4。Principles,etc。,p。475。5。Hedidnotperceivethatallthatthelandlordspendsinpurchasingthesubsistenceandclothingofhisservantsissomuch

  deductedfromwhathewouldotherwisehavetopaytheminmoney。

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