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第38章 The Wage-Fund Theory(4)

If he is not,he will resist a rise on the ground that he 'cannot afford'to pay more wages.This is what an arbitrator,for instance,might say if he examined the books,and he would mean by it that,if the employer had to raise his wages,he would have to be content with lower profits than he could make in other trades.As a matter of fact,however,capitalists often do make exceptionally high profits,and it is in such cases that Trades-Unions have been very successful in forcing them to share these exceptional profits with their men.Secondly,though the employer be getting only ordinary profits,his workmen may still be strong enough to force him to give higher wages,but he will only do so permanently if he can compensate himself by raising the price of his commodity.Thus the second limit to a rise in wages in a particular trade is the amount which the consumer can be forced to pay for its products.Workmen have often made mistakes by not taking this into account,and have checked the demand for the articles which they produced,and so brought about a loss both to their masters and themselves.In a particular trade then the limit to a rise in wages is reached when any further rise will drive the employer out of the trade,or when the increased price of the commodity will check the demand.When dealing with the general trade of a country,however,we can neglect prices altogether,since there can be no such thing as a general rise in prices while the value of the precious metal is stationary.Could,then,the whole body of the workmen throughout the kingdom,by good organisation,compel employers to accept lower profits?If there was a general strike,would it be the interest of the employers to give way?It is impossible to answer such a question beforehand.It would be a sheer trial of strength between the two parties,the outcome of which cannot be predicted,for nothing of the kind has ever actually taken place.

And though there is now a nearer approximation than ever before to the supposed conditions,there has as yet been nothing like a general organisation of workmen.

Assuming,however,that the workmen succeeded in such a strike,we can then ask what would be the effect of a general rise of wages in the long-run?One of several results might ensue.The remuneration of employers having declined,their numbers might diminish,and the demand for labour would then diminish also and wages fall.Or again the decline in the rate of interest might check the accumulation of capital,thus again diminishing the demand for labour.Or,on the other hand,the rise in wages might be permanent,the remuneration of employers still proving sufficient,and the accumulation of capital remaining unchecked.Or lastly,higher wages might lead to greater efficiency of labour,and in this case profits would not fall.It is impossible to decide on a priori grounds which of these results would actually take place.

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