The Universalist. [volume] (Chicago [Ill.]) 1884-1897, 1895-10-05

"the iron law of wages" is based on
Ricardo's doctrine that the natural
price of labor depends on the price
of the food, necessaries and conven-
fences required for the support of the
laborer. With rise in the price of
| food and necessaries, the price of
labor will rise; with fall in their
price the natural price of labor will
fall" In other words, the rate of
wages paid to any class of laborers
depends upon his absolute necessities
he being able under this law to Sc
cure no more than is essential for his
food, raiment and shelter. Under
modern conditions this is, indeed,
an iron law. Formerly it probably
held good, and it holds good today
to the extent that all persons, whether
laborers or others, are questioning
not only it's righteousness, but its
economic results. Ethically every
man would be glad to see the iron
law supplanted by golden law, I'M
der which every man, employer or
employee, should render his very best
service; that is, the employee should
give his very best service, and the
employer should give the very best
wage possible.
Wages are divided into two classes.
real and nominal. Nominal wages
are represented by rates, without any
other qualification. If carpenter
receives 81 per day, that is the nom
inal rate of wage. The real rate of
wage is determined by the cost of
living, or the purchasing power of
the $4 which the carpenter receives
for his days labor. 1t will at once
be observed that as prices fuctuate,
with the nominal rate remaining
steady, real wages vary. Real wages
again, are affected by continuity of
employment. A carpenter may re-
ceive 81 per day while he works, but
on account of short seasons, fuctua-
tions in business, or other causes,
may not be able to secure labor more
than ten months in the year, for in
stance. His nominal wage then is
reduced in value when the real wage
is considered.
Want is of two kinds: that which
represents desire for more as the
result of ones labor, and that which
represents state of being without
even the necessaries of life. In this
latter sense went may determine the
rates of wages paid under the Ricar-
dian doctrine; but want which indi-
Gates progressive desire must be
considered as that comprehensive
definition of the labor question which
means the struggle for a higher
standard of living. 1t is this struggle
which enters into all the phases Of
the labor question of the present day,
and which is constantly changing the
luxuries of one period to the neces-
saries of subsequent period. Under
this kind of want the wage receiver
finds himself constantly obliged to
secure for himself and his family the
comforts and the conveniences which
generation or two ago would have
been considered luxuries, obtainable
only by those in receipt of large in
comes either from business or invest
ed wealth. This view indicates the
general soundness of the idea that
the standard of living regulates, to a
large extent, the rates of wages paid
in various callings.
The only animal which, by it's con
stitution, possesses the desire or fac
ulty to increase its number of wants,
is man. An ignorant, undeveloped
man, living in practically savage
state. has but few wants, and when he
for any reason exchanges his service
for that of fellow-being he demands
but little in return. Such beings are
more apt to live on quasi commun-
istie basis, under which the question
of compensation for services rendered
does not enter; but when their nature
develops, and they learn the use of
tools and taste the satisfaction of
storing the results of their labor and
their affections are developed, so that
they grow out of mere animal wants
into the realm of affection and look
out for their kind, then they abso-
lutely feel the necessity of fixing the
price for what they have to exchange
for things which they do not produce
themselves, and this leads directly
and positively to the fixing of price
for their services.
The course of wages in this country
illustrates the course of wages in all
countries where intelligence has been
| developed through educational pro-