If the supply is in excess of what the capital can at present employ, wages must fall. If the labourers are all employed, and there is a surplus of capital still unused, wages will rise. This series of deductions is generally received as incontrovertible. They are found, I presume, in every systematic treatise on political economy, my own certainly included. I must plead guilty to having, along with the world in general, accepted the theory without the qualifications and limitations necessary to make it admissible. (7)(7. Cf. "Preface" to the 7th ed. of Principles of Political Economy, 8. That those who have not yet read Mr. Thornton's book may not be even temporarily liable to the misunderstanding of his meaning, and of the whole spirit of his writings, which might be the effect of reading only the passage cited in the text, I will at once bring forward the other side of his opinion. Nothing, he says, can be further from his purpose "than to exculpate the existing social system, or to suggest an excuse for continued acquiescence in its enormities..... To affirm that those evils of the existing social polity which constitute the peculiar grievance of the poor are not the result of human injustice, is perfectly consistent with the most vehement denunciation both of the evils themselves and of the heartless indifference that would perpetuate them. It is perfectly consistent, even with the admission that the rich are bound to do what they can to alleviate those evils -- with this proviso, however, that they are so bound, not by their duty to others, but by their duty to themselves.
The obligation is imposed upon them not by injunctions of justice, but by the force of sympathy and the exhortations of humanity and charity.
The sacrifices which it may thus become incumbent on the rich to make, the poor are not in consequence entitled to demand. If the sacrifices are withheld, the rich stand convicted indeed of brute selfishness, but they do not thereby lay themselves open to the additional charge of injustice.
This distinction is not drawn for the sake of pedantic precision; it is one of immense practical importance. To all right reasoning, it is essential that things should be called by their right names; and that nothing, however bad, should receive a worse name than it deserves. The more glaring a sin, the less reason is there for exaggerating it; and, in the case before us, the use of an erroneous epithet has been a fruitful source of further error.
Unless the present constitution of society had been arbitrarily assumed to be unjust, it would never have been proposed to correct its injustice by resorting to means which would otherwise have been at once perceived to be themselves utterly unjustifiable. On no other account could it ever have been supposed that liberty demanded for its own vindication the violation of liberty, and that the ******* of competition ought to be fettered or abolished. For ******* of competition means no more than that every one should be at liberty to do his best for himself, leaving all others equally at liberty to do their best for themselves. Of all the natural rights of man, there is not one more incontestable than this, nor with which interference would be more manifestly unrighteous. Yet this it is proposed to set aside as incompatible with the rights of labour, as if those could possibly be rights which cannot be maintained except by unrighteous means. (Pp. 94-5.)
The heartiness of Mr. Thornton's devotion to the interest of the labouring classes (or, it should rather be said, to the interest of human nature as embodied in them), is manifested throughout the work; but nowhere so vividly as in the noble Introductory Chapter, where he depicts a state of things in which all the grosser and more palpable evils of their poverty might be extinct, and shows that with this they ought not, and we ought not, to be content. It is not enough that they should no longer be objects of pity. The conditions of a positively happy and dignified existence are what he demands for them, as well as for every other portion of the human race.)
The theory rests on what may be called the doctrine of the wages fund.
There is supposed to be, at any given instant, a sum of wealth, which is unconditionally devoted to the payment of wages of labour. This sum is not regarded as unalterable, for it is augmented by saving, and increases with the progress of wealth; but it is reasoned upon as at any given moment a predetermined amount. More than that amount it is assumed that the wages-receiving class cannot possibly divide among them; that amount, and no less, they cannot but obtain. So that, the sum to be divided being fixed, the wages of each depend solely on the divisor, the number of participants. In this doctrine it is by implication affirmed, that the demand for labour not only increases with the cheapness, but increases in exact proportion to it, the same aggregate sum being paid for labour whatever its price may be.
But is this a true representation of the matter of fact? Does the employer require more labour, or do fresh employers of labour make their appearance, merely because it can be bought cheaper? Assuredly, no. Consumers desire more of an article, or fresh consumers are called forth, when the price has fallen: but the employer does not buy labour for the pleasure of consuming it; he buys it that he may profit by its productive powers, and he buys as much labour and no more as suffices to produce the quantity of his goods which he thinks he can sell to advantage. A fall of wages does not necessarily make him expect a larger sale for his commodity, nor, therefore, does it necessarily increase his demand for labour.
