Labor (economics)

“ Besides the mass of necessaries required for his own maintenance, he wants another amount of necessaries to bring up a certain quota of children that are to replace him on the labor market and to perpetuate the race of laborers... It will be seen that the value of laboring-power is determined by the value of the necessaries required to produce, develop, maintain and perpetuate the laboring-power. ”

“ Inasmuch, then, as Labor produces all Wealth and without Labor no Wealth is or can be produced, some Wealth must naturally be distributed or allocated to Labor as Wages before any can be distributed or allocated to Land-ownership as Rent. ”

“ II. Farmers who are at the same time wage laborers, either in agriculture, or in industry.
III. Proletarians, i. e. those who stopped working on their plots and earn their living exclusively by means of wage labor.
Let us examine these classes in detail.
Ad I. Combine all merely agricultural groups in which [108] the income from farming exceeds the expenses of housekeeping, taxes and rent, and in which, furthermore, all the householders cultivate their plots with their own stock and implements. ”

“ What the production of a thing costs to its producer, or its series of producers, is the labor expended in producing it. If we consider as the producer the capitalist who makes the advances, the word Labor may be replaced by the word Wages: what the produce costs to him, is the wages which he has had to pay. At the first glance, indeed, this seems to be only a part of his outlay, since he has not only paid wages to laborers, but has likewise provided them with tools, materials, and perhaps buildings. These tools, materials, and buildings, however, were produced by labor and capital ”

“ What the laborers require to live, and to marry, and beget children in sufficient numbers to supply the labor market, is their standard of life. This they obtain and no more. Labor costs labor, and is measured by labor; but labor produces more than it consumes, and this surplus-value is rent. ”

“ Thus the common meaning of the word wages is the compensation paid to a hired person for manual labor. But in political economy the word wages has a much wider meaning, and includes all returns for exertion. For, as political economists explain, the three agents or factors in production are land, labor, and capital, and that part of the produce which goes to the second of these factors is by them styled wages.
Thus the term labor includes all human exertion in the production of wealth, and wages, being that part of the produce which goes to labor, includes all reward for such exertion. ”

“ On the basis of this mode of production, the laborer’s cost of production consists of the sum of the means of subsistence (or their price in money) which on the average are requisite to enable him to work, to maintain in him this capacity for work, and to replace him at his departure, by reason of age, sickness, or death, with another laborer—that is to say, to propagate the working class in required numbers. ”

“ In very low stages of civilization, where there is scarcely any such thing as rent, and where capital is extremely rare, the wages of labor, notwithstanding its small amount absolutely speaking, must eat up the greatest part of the product. ”

“ In this case it is as clear as in the case of the self-employing laborer that the wages are really drawn from the product of the labor, and not at all from capital. If I hire a man to gather eggs, to pick berries, or to make shoes, paying him from the eggs, the berries, or the shoes that his labor secures, there can be no question that the source of the wages is the labor for which they are paid. ”

“ It should be said at the outset of this chapter that, in a very true sense, practically all men are laborers. That into which a man puts his energy and by which he earns his living, is his labor, whether it be work of the hand or the head. But the labor we are to consider in this chapter is that of the men who work for wages; and we will also make the arbitrary distinction that it is that of the men who work for wages in some branch of manufacturing, mining, trade, or transportation, the great divisions of modern industry which we have thus far considered. ”

“ Now, the primary and fundamental occupations, upon which, so to speak, all others are built up, are evidently those which procure wealth directly from nature; hence the law of wages in them must be the general law of wages. And, as wages in such occupations clearly depend upon what labor can produce at the lowest point of natural productiveness to which it is habitually applied; therefore, wages generally depend upon the margin of cultivation, or, to put it more exactly, upon the highest point of natural productiveness to which labor is free to apply itself without the payment of rent. ”

“ If the numbers in any group of wage earners are high relative to the uses in which the employment of the members of that group results in a considerable addition to the product of market values, the wages of that group will be low, and vice versa. The need of the productive system for any kind of labor, relative to the supply available to fill that need is an important factor in determining the reward paid for that labor. ”

“ Of Capital as a Requisite of Production.
But another set of laborers are to be placed in distinct contrast with these, so far as the grounds on which they receive their remuneration is concerned. These are the men engaged previously in providing the subsistence, and articles by which the former classes of labor can carry on their operations. The previous employment of labor is an indispensable condition to every productive operation, on any other than the very smallest scale. Except the labor of the hunter and fisher, there is scarcely any kind of labor to which the returns are immediate. ”

“ If the productive organization has at its command a plentiful supply of capital; if in the community there are many men possessed of a high order of business ability; if then, 55 labor for the commoner tasks of production is relatively scarce, the work of the ordinary wage earner will be a means of adding considerably to the total of market values produced. Or, as it is sometimes put, each use of labor will be an important use. Labor will be in great demand, and wages will be high. ”

“ Let us assume that the money-price of these means of subsistence averages 3 dollars a day. Our laborer gets therefore a daily wage of 3 dollars from his employer. For this, the capitalist lets him work, say twelve hours a day. ”

“ By virtue of the law of wages the increase in the productivity of labor by the perfecting of machinery increases the frequency of dull seasons and makes poverty more general by diminishing the demand for and augmenting the supply of laborers. ”

“ This we may hope to do by several methods; for example, by reducing the daily hours of labor, by promoting vocational education, by the restriction of child employment, by a better organization of the labor market (see p. 418) , and by providing wholesome recreation for the workers.
Labor is a service. Is Labor a Commodity?—Labor, as a factor in production, receives its return in the form of wages. A generation ago it was customary to speak of labor as a commodity and to say that the worker “sold his labor” for wages. But labor is not a commodity. ”

“ It is cases of this class that are always instanced as showing that wages are advanced from capital. For where wages are paid before the object of the labor is obtained, or is finished—as in agriculture, where plowing and sowing must precede by several months the harvesting of the crop ”

“ The value of a commodity is determined by the labor-time socially necessary for its production, in this case necessary for the proletarian and his family to live; for the workman being mortal, and capital having need of new forces, the wage must be sufficient to raise a new generation of workers. ”

“ That portion of the capital or wealth of a country which the employers of labor intend to or are willing to pay out in the purchase of labor, may be much larger at one time than another. But whatever may be its absolute magnitude, it obviously forms the only source from which any portion of the wages of labor can be derived. ”

“ Land and capital constitute the instruments of labor, and without them production is impossible. Their possessors refuse to give them up to another’s use unless a share of the produce is guaranteed them therefor, while the laborer’s hunger and the sufferings of his family compel him to assent. Labor is treated as a commodity. It is bought and sold like other commodities, and its value depends on its cost. What is the cost of labor? ”

“ Production is always the mother of wages. Without production, wages would not and could not be. It is from the produce of labor, not from the advances of capital that wages come.
Wherever we analyze the facts this will be found to be true. For labor always precedes wages. This is as universally true of wages received by the laborer from an employer as it is of wages taken directly by the laborer who is his own employer. In the one class of cases as56 in the other, reward is conditioned upon exertion. ”

“ If production had not passed the simple stage in which all labor is directly applied to the land and all wages are paid in its produce, the fact that when the land owner takes a larger portion the laborer must put up with a smaller portion could not be lost sight of. ”

“ But such materials partially worked up and in the course of exchange are capital.
Capital does not supply or advance wages, as is erroneously taught. Wages are that part of the produce of his labor obtained by the laborer. ”

“ If, then, leaving rent out of the question, we inquire in what it is that the advances of the capitalist, for purposes of production, consist, we shall find that they consist of wages of labor.
A large portion of the expenditure of every capitalist consists in the direct payment of wages. ”

“ While capital invested in manufactures is yielding adequate and fair profits under the new system, the wages of labor, whether employed in manufactures, agriculture, commerce, or navigation, have been augmented. The toiling millions whose daily labor furnishes the supply of food and raiment and all the necessaries and comforts of life are receiving higher wages and more steady and permanent employment than in any other country or at any previous period of our own history. ”

“ To sum up: the more productive capital grows, the more it extends the division of labor and the application of machinery; the more the division of labor and the application of machinery extend, the more does competition extend among the workers, the more do their wages shrink together. ”

“ That whereas it was evident that the system of paying for labor with a portion of the commodity which each laborer produced would necessitate as much time and labor to make their wages serviceable to their wants as was required in the first instance to earn said wages ”

“ WAGES OF LABOR.—THE MINIMUM OF WAGES.
Human labor cannot, any more than any other commodity, be supplied, in the long run, at a price below the cost of production. [161-1] [161-2] The cost of production here embraces not only the necessary or customary means of subsistence of the workman himself, but also of his family; that is, of the coming generation of workmen. The number of the latter depends essentially on the demand for labor. ”

“ We cannot let pass without qualification the assertion that there is a considerable difference between the laborer's wages and the means of subsistence requisite for his scant maintenance. It is exactly this point, the rate of wages, upon which practically the whole great social question turns. ”

“ The great mass of the people--nine, perhaps, out of ten--were wage-earners who sold their labor to the producing capitalists; or small first-hand producers, who sold their personal product to the middlemen. The farmers were of the latter class. With the money the wage-earners and farmers received in wages, or as the price of their produce, they afterward went into the market, where the products of all sorts were assembled, and bought back as much as they could for consumption. ”

“ Hundreds of millions of them are receiving, for their labor, not more than three, five, or, at most, ten cents a day.
In western Europe, and in the United States, where, within the last hundred and fifty years, machinery has been introduced, and where alone any considerable wealth is now created, the wage laborers, although they get so small a portion of the wealth they create, are nevertheless in a vastly better condition than are the laboring classes in other parts of the world. ”

“ The payment of wages, therefore, always implies the previous rendering of labour. Now, what does the "rendering" of labour in production imply? Evidently the production of wealth, which, if it is to be exchanged or used in production, is capital. ”

“ If each laborer in performing the labor really creates the fund from which his wages are drawn, then wages cannot be diminished by the increase of laborers, but, on the contrary, as the efficiency of labor manifestly increases with the number of laborers, the more laborers, other things being equal, the higher should wages be. ”

“ The answer of the current political economy is, that wages are fixed by the ratio between the number of laborers and the amount of capital devoted to the employment of labor, and constantly tend to the lowest amount on which laborers will consent to live and reproduce, because the increase in the number of laborers tends naturally to follow and overtake any increase in capital. ”