196. THE OUTLOOK.—Although it is probable that industrial disagreements will long endure, we have a right to expect that continued progress will be made in settling these disputes peaceably. By many it is believed that compulsory arbitration is the most effective method of securing industrial peace, but for reasons already given, the extension of this form of arbitration will probably be slow in this country. English experience would indicate that we have not yet exhausted the possibilities of the trade agreement, but though this device is becoming better known in the United States, both the American laborer and the American employer are still disposed to settle their differences by means of the strike, the lockout, and similar weapons.
The present century is an age of industrial stress and change, and it is possible that the ultimate solution of the disputes between labor and capital has not yet been advanced. From the data now at hand, however, it is maintained by many that labor disputes must ultimately be eradicated through the development of industrial democracy. Industrial democracy implies the joint direction of industrial policies by employer and employees, working together harmoniously and in the spirit of equality. When industrial democracy is attained, according to this view, mutual trust and the spirit of friendly co÷peration will enable labor and capital to adjust their differences peaceably and economically, without dictation from any outside source.
QUESTIONS ON THE TEXT
1. Why are we accustomed to speak of labor and capital as the two chief factors in production?
2. Why have labor organizations arisen?
3. Name some employers' associations.
4. Contrast the aims of the union with the aims of the employers' association.
5. Discuss the methods of industrial warfare.
6. Why is industrial warfare undesirable?
7. What is the attitude of American democracy toward industrial warfare?