The Catholic bulletin. [volume] (St. Paul, Minn.) 1911-1995, 1913-08-09

ism is preferable to this regime of
despair.
The situation is not nearly as simple
as this objection supposes. There are
at least four distinct sources from
which the higher wages called for by
minimum wage law could be derived.
First, the workers themselves. La
borers who have been compelled to
live on wages insufficient to maintain
them in health and normal working
capacity will produce greater or less
portion of the increased wage through
their increased efficiency It has been
proved over and over again that cheap
labor is not always nor in the long
run really cheap.
Second, better methods of produc-
ton. When certain employers are
compelled to pay all their employees
decent wages, they will find it neces-
sary to install better machinery, and
to introduce better methods generally.
They will no longer find it profitable
to substitute men for machines and
for competent management Out of
this saving in the mechanical and
managerial cost of production will
come the means of paying part or all
of increased wages in many industries.
Third, profits. Many employers
could pay the minimum established by
law, and still make reasonable profits,
even though no increase took place
in the efficiency of the workers or in
the methods of production. Some of
their competitors could not do so, and
would probably be forced out of busi-
nes by the operation of minimum
wage law. Let them go. The man
or the industry that can continue to
exist only through giving human be-
ings less than living wages has no
right to exist. When they have been
eliminated, the competent employers
will be fully able to provide for all
consumers, and will be in a better
position to pay decent wages than
they are now.
Fourth, higher prices. 1t is quite
probable that in some industries the
three sources already mentioned
would not suffice to provide all of the
wage increase called for by minimum
wage law. In the case of these a part
of the added cost would have to be
transferred to prices. But this would
, not always mean falling off in the
demand for these kinds of goods; for
, some consumers would continue to
buy as much as they had bought at
the lower prices, and the higher wages
received by the workers would enable
the latter to expend more for these
, kinds of goods than they had expended
! formerly.
Whether the net result of the opera
ton of these four factors would be
an increase or decrease in the total
amount of employment, is question
' that no man can answer beforehand.
/ 1t is Overwhelmingly probable that
! some relatively inefficient workers who
are now employed at very low wages
: would lose their jobs because their
employers would not regard them as
/. worth the legal minimum wage. But
the number thrown out of work for
: this reason would evidently be much
t smaller than is assumed by those per-
: sons who urge the extraordinary OBJ
2 lection above considered. Even il the
: workers disemployed by minimum
: wage enactment should turn out to be
r much more numerous than the friends
; of the project expect, the law would
I be good thing, inasmuch as it would
assure living wages to the majority
4 of those who are now underpaid. The
5 State would be compelled to make hu.
: name and scientific provision for the
) unemployed.
Continued on page 81