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Chapter 3 - Progress and Poverty -
From Poverty by James Platt

P56 POVERTY.

have been abstinence by someone to have the necessary capital to buy the materials, &e., without which the boots could not be made. Mr. George says it makes no difference whether wages be paid in kind or in money, the money being but the equivalent for the produce of the labour ; and capital is not wanted, because at the moment when the owner takes from his capital money to pay for the labour, he adds to his capital an equivalent in the product of the labour he pays for. And he asks, " Is not the identity of

 
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wages in money with wages in kind true of all cases in which wages are paid from productive labour?

Is not the fund created by the labour really the fund from which the wages are paid?" That the wages paid for labour are generally paid back by what the labour produces, there is no doubt ; the object of the employer in paying wages for work to be done, is to replace the capital he advances, with his profit added thereto. But that is not the question ; it really is, are wages paid for out of the capital in existence before a work is commenced ; or is it, as Mr. George asserts, all paid for out of the result of the work ? Take a manufacturer of woollen cloths: he has to buy or build a mill, he has to buy the necessary machinery and raw material; he employs a lot of weavers, &c., he pays these weekly their wages as the work progresses ; he has to submit samples or stock to buyers, he has to wait as a rule, from six to twelve months, after buying his raw material, before he gets his money back for the finished product. Is this work done, is the labour paid for, out of a 11 previously existing capital," or is it paid for weekly by what the weavers produce ? After the first sinking of capital in machinery, plant, raw material, it may be that the finished product, sold day by day, replaces the capital used week by week to pay labour ; but the mill itself, the giving of work to the weavers, could not be started at all without a previous accumulation of capital by some one. Therefore, I deny altogether Mr. George's assertion that " it is from the produce of labour, not from the advance of capital, that wages come." Mr. George then tells us that capital is not wanted to pay labour,

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Poverty - by James Platt

© Peter Smith 2008