Economic essays

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Identifikator:: 1753623200

URN:: urn:nbn:de:zbw-retromon-136107

Document type:: Monograph

Title:: Economic essays

Place of publication:: New York

Publisher:: Macmillan

Year of publication:: 1927

Scope:: viii, 368 S.; Ill., graph. Darst.

Digitisation:: 2021

Collection:: Economics Books

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Document type:: Monograph

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Title:: The static state and the technology of economic reform / Thomas Nixon Carver

Collection:: Economics Books

34 ECONOMIC ESSAYS IN HONOR OF JOHN BATES CLARK In order to deal effectively with any static state or any economic equilibrium, it is necessary to know the factors and forces that are in the balance. To be somewhat more specific if it is desired to change an equilibrium wage to the advantage of laborers, in a given occupation, it is necessary to know what factors are at work inducing laborers to offer themselves for hire in that occupation, or what factors are at work inducing employers to offer to hire laborers. When this is once under- stood in some detail, we may find some way of reducing the num- ber who will offer themselves for hire at the old wage, or increas- ing the number which employers would be willing to hire. Either way would change the equilibrium, and require a higher wage to bring about a balance between the number wanting employment and the number wanted by employers. If, for example, it is found that one factor in the equilibrium of the demand for and supply of labor of a given kind is free immigration from a low wage country, such as Mexico, China, or India, so that a very low wage is sufficient to induce as many laborers to offer themselves in this country as employers are able or willing to hire, the effective method of meeting that situation is to shut off these supplies of cheap labor. When this is done a new equilibrium wage will establish itself without further effort. In other words, it will then require a higher wage than formerly to induce as many laborers to offer themselves as employers are willing to hire. If, on the other hand, instead of restricting immigration from the overpopulated countries, wages are raised directly by decree, it merely makes the country still more desirable to immigrants, increases immigration, and, unless other and more drastic measures are taken, the resulting industrial reserve army will bring its long train of evils. The employing classes, being presumably more familiar with the laws of the market than are manual laborers, have generally been able to out maneuver the laboring classes and to manipulate these factors in the equilibrium wage to their own advantage. They seem, at least, to have a fairly clear understanding of the procedure. An illustration of this is found in a statement of the late Frank A. Munsey before the American Bankers’ Association in 1922. He, like many of his class, seemed to know exactly what he wanted and how to get it.

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