Thirdly, it is claimed that we shall not be ousted either from our own or from foreign markets by foreign competition, because the eight hours movement in England must be regarded as part of a larger industrial movement which is proceeding pari passu among the competing nations. If the wages of German, French, and American workers are advancing at the same rate as English wages, or if other industrial restrictions in those countries are otherwise increasing the expenses of production at a corresponding rate, the argument of foreign competition falls to the ground.
These leading arguments of the advocates of an eight hours day are of very unequal value. The first argument is really based upon the supposition that the increased aggregate of wages can be "got out of capital" by lowering interest and profits. The general validity of this argument may be questioned. In its application a distinction must be drawn between those businesses which by means of the possession of some monopoly, patent, or other trade advantage are screened from the full force of competition, and are thus enabled to earn profits above the average, and those businesses where the constant stress of close competition keeps interest and profits down to the lowest point which suffices to induce the continued application of capital and organizing ability. In the former cases the "cost" of an Eight Hours Day might be got out of capital, assuming an effective organization of labour, in the latter cases it could not.
As to the second argument, it is probable enough that the legal eight hours day would accelerate the industrial evolution, which is enabling the large well-equipped factory to crush out the smaller factory. As we have seen that the worst evils of "sweating" are associated with a lower order of industrial organization, any cause which assisted to destroy the small workshop and the out-work system, would be a benefit. But as the economic motive of such improved organization with increased use of machinery, would be to save human labour, it is doubtful whether a quickening of this process would not act as a continual feeder to the band of unemployed, by enabling employers to dispense with the services of even this or that body of workers whose work is taken over by brute machinery.
The net value of these two eight hours arguments is doubtful. The real weight of the discussion seems to rest on the third.
If the movement for improving the industrial condition of the working classes does proceed as rapidly in other industrial countries as in our own, we shall have nothing to fear from foreign competition, since expenses of production and prices will be rising equally among our own. If there is no such equal progress in other nations, then the industrial gain sought for the working classes of this country by a shorter day cannot be obtained, though any special class or classes of workers may be relieved of excessive toil at the expense of the community as a whole. Government employés, and that large number of workers who cannot be brought into direct competition with foreign labour, can receive the same wages for shorter hours, provided the public is willing to pay a higher price for their protected labour.
In conclusion, it may be well to add that the economic difficulties which beset this question cannot be lightly set aside by an assertion that the same difficulties were raised by economists against earlier factory legislation, and that experience has shown that they may be safely disregarded. It is impossible to say how far the introduction of humane restrictions upon the exploitation of cheap human labour has affected the aggregate production of wealth in England. It has not prevented the growth of our trade, but very possibly it has checked the rate of growth. If the mere accumulation of material wealth, regardless alike of the mode of production or of the distribution, be regarded as the industrial goal, it is quite conceivable that a policy of utter laissez faire might be the best means of securing that end. Although healthy and happy workers are more efficient than the half-starved and wholly degraded beings who slaved in the uninspected factories and mines during the earlier period of the factory system, and still slave in the sweater's den, it may still be to the interest of employers to pay starvation wages for relatively inefficient work, rather than pay high wages for a shorter day's work to more efficient workers. It is to the capitalist a mere sum in arithmetic; and we cannot predict that the result will always turn in favour of humanity and justice.
At the same time, even if it is uncertain whether a shorter working day could be secured without a fall of wages, it is still open to advocates of a shorter working day to urge that it is worth while to purchase leisure at such a price. If a shorter working day could cure or abate the evil of "the unemployed," and help to raise the industrial condition of the low-skilled workers, the community might well afford to pay the cost.
Chapter VII.
Over-Supply of Low-Skilled Labour.
§ 1.Restatement of the "Low-skilled Labour" Question.--Our inquiry into Factory Legislation and Trade Unionism as cures for sweating have served to emphasize the economic nature of the disease, the over-supply of low-skilled labour. Factory legislation, while it may abate many of the symptoms of the disease, cannot directly touch the centre of the malady, low wages, though by securing publicity it may be of indirect assistance in preventing the payment of wages which public opinion would condemn as insufficient for a decent livelihood. Trade Unionism as an effective agent in securing the industrial welfare of workers, is seen to rest upon the basis of restriction of labour supply, and its total effectiveness is limited by the fact that each exercise of this restriction in the interest of a class of workers weakens the position of the unemployed who are seeking work. The industrial degradation of the "sweated" workers arises from the fact that they are working surrounded by a pool of unemployed or superfluous supply of labour. So long as there remains this standing pool of excessive labour, it is difficult to see how the wages of low unskilled workers can be materially raised. The most intelligent social reformers are naturally directing their attention to the question, how to drain these lowlands of labour of the superfluous supply, or in other words to keep down the population of the low-skilled working class. Among the many population drainage schemes, the following deserve close attention--