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.