ROBERT TELLS ABOUT THE GLUT OF MEN.
"Now, Robert," said the teacher, "John has told us how the glut of products resulting from the profit system caused a competition among capitalists to sell goods and what its consequences were. There was, however, another sort of glut besides that of goods which resulted from the profit system. What was that?"
"A glut of men," replied the boy Robert. "Lack of buying power on the part of the people, whether from lack of employment or lowered wages, meant less demand for products, and that meant less work for producers. Clogged storehouses meant closed factories and idle populations of workers who could get no work--that is to say, the glut in the goods market caused a corresponding glut in the labor or man market. And as the glut in the goods market stimulated competition among the capitalists to sell their goods, so likewise did the glut in the labor market stimulate an equally desperate competition among the workers to sell their labor. The capitalists who could not find buyers for their goods lost their money indeed, but those who had nothing to sell but their strength and skill, and could find none to buy, must perish. The capitalist, unless his goods were perishable, could wait for a market, but the workingman must find a buyer for his labor at once or die. And in respect to this inability to wait for a market, the farmer, while technically a capitalist, was little better off than the wage-earner, being, on account of the smallness of his capital, almost as unable to withhold his product as the workingman his labor. The pressing necessity of the wage-earner to sell his labor at once on any terms and of the small capitalist to dispose of his product was the means by which the great capitalists were able steadily to force down the rate of wages and the prices paid for their product to the first producers."
"And was it only among the wage-earners and the small producers that this glut of men existed?"
"On the contrary, every trade, every occupation, every art, and every profession, including the most learned ones, was similarly overcrowded, and those in the ranks of each regarded every fresh recruit with jealous eyes, seeing in him one more rival in the struggle for life, making it just so much more difficult than it had been before. It would seem that in those days no man could have had any satisfaction in his labor, however self-denying and arduous, for he must always have been haunted by the feeling that it would have been kinder to have stood aside and let another do the work and take the pay, seeing that there was not work and pay for all."
"Tell us, Robert, did not our ancestors recognize the facts of the situation you have described? Did they not see that this glut of men indicated something out of order in the social arrangements?"
"Certainly. They professed to be much distressed over it. A large literature was devoted to discussing why there was not enough work to go around in a world in which so much more work evidently needed to be done as indicated by its general poverty. The Congresses and Legislatures were constantly appointing commissions of learned men to investigate and report on the subject."
"And did these learned men ascribe it to its obvious cause as the necessary effect of the profit system to maintain and constantly increase a gap between the consuming and producing power of the community?"
"Dear me, no! To have criticised the profit system would have been flat blasphemy. The learned men called it a problem--the problem of the unemployed--and gave it up as a conundrum. It was a favorite way our ancestors had of dodging questions which they could not answer without attacking vested interests to call them problems and give them up as insolvable mysteries of Divine Providence."
"There was one philosopher, Robert--an Englishman--who went to the bottom of this difficulty of the glut of men resulting from the profit system. He stated the only way possible to avoid the glut, provided the profit system was retained. Do you remember his name?"