242 ECONOMIC ESSAYS IN HONOR OF JOHN BATES CLARK | 
ing of the cost. The productivity analysis, despite Mr. Gompers’ 
contempt for the economists, has really come to take first place 
in the wage thinking of the Federation leaders. The shift is 
plain enough in the thought of Mr. Gompers himself. In 1909 he 
quotes census figures to show increased per capita production, 
and then argues that “the wage-earner should by every logical 
reason reap the benefits of labor-saving machines and labor- 
saving systems, so he could participate in the industrial progress 
and the blessings of civilization with fewer hours of daily toil 
and more hours for leisure and opportunities for recuperation, 
study, and reflection to better fit the workers for the highest 
thought and activity of citizenship” *—which is sound enough 
economics, but is a complete reversal of the fiery old eight-hour 
gospel; for that gospel made it necessary only to shorten hours in 
order to increase wages and production, while the newer doc- 
trine points out that it is the increase of production which has 
made possible at the same time increased wages and shorter 
hours. as 
This shift of emphasis in Federation thought during the present 
century from distribution and consumption in the direction of 
production, the academic economist may fairly enough regard as 
a triumph for sound thinking. Without doubt union thought has 
been obliged to take cognizance of a body of fact almost wholly 
neglected in earlier days; but it is questionable whether a basic 
change from a standard-of-living to a productivity theory of 
wages is likely to prove a wholly unmixed blessing to the labor 
movement, unless it be accompanied by other theoretical develop-| 
ment. Possibly it was an uneasy recognition of this doubt which 
led the Executive Council of the Federation to ask the Denver 
Convention for authority to investigate wage theories in order, 
as stated in their report for the following year, “to develop a 
comprehensive, well-considered theory capable of real service in 
the practical problems of determining wages.” * In making this 
request, the Executive Council said: “There are but two avenues 
leading to permanent higher standards of living for our people as 
a whole. One of these is the elimination of waste, either in the 
form of mismanagement or of undue exploitation and profiteer- 
ing. The other is increased productivity. Both must be traveled 
' Proceedings, 1909, p. 26. 
® Ibid. 1921, p. 69; 1922 p. 34.