STATIC STATE AND THE TECHNOLOGY OF ECONOMIC REFORM 41 
reserve army, with all the train of consequences indicated in pre- 
vious paragraphs. Any country in which business is held in low 
esteem, in which the universities uniformly try to train men for 
anything except business, will always have a scarcity of business 
talent. Its industries will always be run in the main by second 
and third rate men and will, in consequence and of necessity, be 
second and third rate industries which cannot possibly pay high 
wages. It is useless in such a situation to attempt to force wages 
to levels which the existing employers of low capacity would be 
unable to pay without bankruptcy. But if something can be done 
to increase the number and improve the quality of the employing 
class, industries will so expand as to raise the equilibrium wage 
automatically. That is, if the wages remain at the previously 
established equilibrium level, the new crop of superior managers 
and employers will be trying to hire more laborers than are 
offering themselves at that low wage. This will automatically 
bring about a readjustment. Under the new situation it will 
require a higher wage to maintain the equilibrium, that is, 
employers will be willing to employ at some higher wage, as 
many laborers as are willing to be hired. 
If it is found that one reason for the small number and low 
quality of business managers and employers is the low esteem in 
which they are held, again the remedy is rather obvious. 
Talented and ambitious men are likely to be rather sensitive 
to the good opinions of their fellow citizens. If a man distinctly 
lowers himself in the opinion of his fellow citizens by entering 
business, many a man will be diverted into the more ornamental 
professions. This may result in a high development of the arts 
and graces of civilization, but it cannot possibly solve the prob- 
lem of low wages. The only man who really solves the problem 
of low wages is the man who manages to pay high wages. The 
only man who can do that is the man who brings great capacity 
to bear upon the problem. The way to get men of great capacity 
to bring their ability to bear on this important problem is either 
to allow them very large incomes or, in lieu of pecuniary incomes. 
show them great consideration and esteem. 
Generally these two forms of reward counterbalance one 
another. If business is generally held in low esteem, it will take 
a great deal more money, in the form either of high profits or 
high salaries, to induce capable men to turn to business, whereas