CHAPTER XI.

SOME EFFECTS OF MODERN INDUSTRY UPON THE WORKERS AS CONSUMERS.

Sec. 1. _How far the different Working Classes gain from the Fall of

Prices._

Sec. 2. _Part of the Economy of Machine-production compensated by the

growing Work of Distribution._

Sec. 3. _The Lowest Class of Workers gains least from

Machine-production._

Sec. 1. In considering the effect of machine-production upon a body of

workers engaged in some particular industry we are not confined to

tracing the effects of improvements in the arts and methods of that

single branch of production. As consumers they share in the

improvements introduced into other industries reflected in a fall of

retail prices. Insomuch as all English workers consume bread they are

benefited by the establishment of a new American railway or the

invention of new milling machinery which lowers the price of bread; as

all consume boots the advantage which the introduction of boot-making

machinery confers upon the workers is not confined to the higher wages

which may be paid to some operatives in the boot factory, but is

extended to all the workers who can buy cheaper boots.

How far do methods of modern capitalist production tend to benefit the

labourer in his capacity as consumer?

Economic theory is in tolerably close accord with experience in the

answer it gives to this question. Each portion of the working classes

gains in its capacity of consumer from improved methods of production

in proportion to the amount by which its income exceeds the bare

subsistence wage of unskilled workers. The highly-paid mechanic gains

most, the sweated worker least. The worker earning forty shillings per

week gains much more than twice as much as the worker earning twenty

shillings from each general cheapening in the cost of production.

There are several reasons why this is so.

1. Where there exists a constant over-supply of labour competing for

what must be regarded at any particular time as a fixed quantity of

employment, wages are determined with tolerably close reference to the

lowest standard of living among that class of workers, and not by any

fixed or customary money wage. This is particularly the case in the

"sweating" trades of large towns. Here such improvements in machinery

and methods of industry as lower the price of articles which fall

within the "standard of living" of this class are liable to be

speedily reflected in a fall of money wages paid for such low-skilled

work. In other words, a "bare subsistence wage" does not gain by a

fall in the price of the articles which belong to its standard of

comfort.

Even in the lowest kinds of work there is no doubt some tendency to

stick to the former money wage and thus to raise somewhat the standard

of real wages, but where the competition is keenest this _vis inertiae_

is liable to be overborne, and money wages fall with prices. As we

rise to the more highly skilled, paid, and organised grades of labour,

we come to workers who are less exposed to the direct constant strain

of competition, where there is not a chronic over-supply of labour.

Here a fall of retail prices is not necessarily or speedily followed

by any corresponding fall of money wages, and the results of the

higher real wages enjoyed for a time impress themselves in a higher

habitual standard of comfort and strengthen the resistance which is

offered to any attempt to lower money wages, even though the attempt

may be made at a time when an over-supply of labour does exist.

In proportion as a class of workers is highly paid, educated, and

organised, it is able to gain the benefit which improved machinery

brings to the consumer, because it is better able to resist the

economic tendency to determine wages by reference to a standard of

comfort independent of monetary considerations. So far as the lowest

waged and most closely competing labourers have gained by the fall of

prices, it has been due to the pressure of sentiment on the part of

the better class of employers and of the public against the lowering

of money wages, even where the smaller sum of money will purchase as

much as a larger sum previously.

2. The smaller the income the larger the proportion of it that is

spent upon commodities whose expense of production and whose price is

less affected by machinery. Machine-production, by the fall of prices

it brings, has benefited people in direct proportion to their income.

The articles which have fallen most rapidly in price are those

comforts and luxuries into which machine-production enters most

largely. The aristocracy of the working classes, whose standard of

comfort includes watches, pianos, books, and bicycles, has gained much

more by the fall of prices than those who are obliged to spend all

their wages on the purchase of bare necessaries of life. The gain of

the former is manifold and great, the benefit of the latter is

confined to the cheapening of bread and groceries--a great benefit

when measured in terms of improved livelihood no doubt, but small when

compared with the increase of purchasing power conferred by modern

production upon the Lancashire factory family, with its L3 or L4 a

week, and in large measure counterbalanced by the increased proportion

of the income, which, in the case of town operatives, goes as rent and

price of vegetables, dairy produce, and other commodities which have

risen in price.

3. The highly-paid operatives generally work the shortest hours, the

low-paid the longest. So far as this is not compensated by an

increased intensity of labour on the part of those working short

hours, it implies an increased capacity of making the most out of

their wages. Longer leisure enables a worker to make the most of his

consumption, he can lay out his wages more carefully, is less tempted

to squander his money in excesses directly engendered by the reaction

from excessive labour, and can get a fuller enjoyment and benefit from

the use of the consumables which he purchases. A large and increasing

number of the cheapest and the most intrinsically valuable

commodities, of an intellectual, artistic, and spiritual character,

are only open to the beneficial consumption of those who have more

leisure at their command than is yet the lot of the low-skilled

workers in our towns.

Sec. 2. If we compare the statistics of wages we shall find that the

largest proportionate rise of money wages has been in the

highly-organised machine industries, and that the benefit which

machinery confers upon the workers in the capacity of consumers falls

chiefly to the same workers.

It must not, however, be assumed that improved methods of production

yield their full benefit through competition to the consuming public.

On the contrary, much of the economy of machine-production fails to

exercise its full influence upon retail prices. There are two chief

reasons for this failure. To one of these adequate attention has been

already drawn, the growth of definite forms of capitalist monopoly,

which secure at some point or other in the production of a commodity,

as higher profits, that which under free competition would pass to the

consumer through lower shop prices. The second consists in the

abnormal growth of the distributive classes, whose multiplication is

caused by the limitation which the economy of machinery imposes upon

the amount of capital and labour which can find profitable employment

in the extractive and manufacturing processes. A larger and larger

number of industrial workers obtain a living by a subdivision of the

work of distribution carried to a point far beyond the bounds of

social utility. For, on the one hand, when competition of

manufacturers and transporters is more and more confined to a small

number of large businesses which, because their united power of

production largely transcends the consumption at profitable prices,

are driven into closer competition, a larger amount of labour is

continually engaged in the attempt of each firm to secure for itself

the largest share of business at the expense of another firm. On the

other hand, shut out from effective or profitable competition in the

manufacturing industries, a larger amount of capital and labour seeks

to engage in those departments of the distributive trade where

new-comers have a better chance, and where by local settlement or

otherwise they have an opportunity of sharing the amount of

distribution that is to be done. Hence a fall of wholesale prices is

usually not reflected in a corresponding fall of retail prices, for

competition in retail trade, as J.S. Mill clearly recognised, "often,

instead of lowering prices, merely divides the gains of the high price

among a greater number of dealers."[238]

Sec. 3. The wide difference between the economic position of the skilled

mechanic and the common labourer shows how fallacious is that

treatment of the influence of machinery upon the condition of the

working classes which is commonly found in treatises of political

economy. To present a comparative picture of the progress of the

working classes during the last half century, which assigns to them an

increase of money wages, obtained by averaging a number of rises in

different employments, and reduces this increase to real wages without

any reference to the different use of wages by different classes, is

an unscientific and mischievous method of dealing with one of the most

important economic questions. The influence of machine-production

appears to be widely different upon the skilled mechanic and the

common labourer considered both as producers and consumers, and tends

to a wide difference in standard of comfort between the two classes.

This difference is further enhanced by the indirect assistance which

machinery and large-scale industry gives to the skilled workers to

combine and thus frequently to secure wages higher than are

economically requisite to secure their efficient work. On the other

hand, growing feelings of humanity and a vague but genuine feeling of

social justice in an ever larger portion of the public often enable

the low-skilled worker to secure a higher standard of comfort than the

operation of economic competition alone would enable him to reach. But

after due allowance is made for this, the conclusion is forced upon us

that the gain of machine-production, so far as an increase in real

wages is concerned, has been chiefly taken by the highly-skilled and

highly-waged workers, and that as the character of work and wages

descends, the proportionate gain accruing from the vast increase of

productive power rapidly diminishes, the lowest classes of workers

obtaining but an insignificant share.

FOOTNOTES:

[238] _Principles of Political Economy_, Bk. ii., chap. iv. Sec. 3.

The Evolution of Modern Capitalism: A Study of Machine Production · 第 11 / 15 章