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In our Library - where Books are free
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Chapter 3 - Progress and
Poverty -
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Mr. George asks: " Why, in spite of increase in productive power, do wages tend to a minimum which will give but a bare living ? " The reply is obvious. The price of labour, like any other commodity, is regulated by supply and demand; if in any given branch of labour there be a scarcity of labour in propor? tion to the demand for it, employers will bid against each other to get it; if, on the contrary, there be an excess of labour, although the labourers may by their unions, prevent A from offering to work for less than B, still the fact, known to employers and employed, that there is an excess of this particular kind of labour, must reduce the price paid for its use. Mr. George recognizes this principle when he tells us that the rate of interest for money is high when wages are high, and low when wages are low. High wages in any branch of labour |
© Peter Smith 2008