Labor as a Factor in Production.—What is labor? Is all muscular and mental exertion entitled to be called labor? Mountain climbing involves the most severe sort of bodily effort. Tourists do it for pleasure and guides do it for pay. Is it labor in one case and not in the other? Some men play chess for recreation; others make a living out of it; in either case there is strenuous mental exertion involved. So where does labor begin and end?
No exact answer can be given to that question. One man’s play is another man’s labor,—gardening, fishing, acting on the stage, for example. But economists usually define labor as “human exertion or effort directed toward the creation of economic goods”. This includes mental as well as physical exertion. All who are engaged in the production of material things or personal services for the satisfaction of human wants are engaged in productive labor.
The economic importance of labor.
Labor, of course, is of great economic importance. The natural resources of the American continent were as great three hundred years ago as they are today; yet they were practically useless in satisfying human wants because the red man would not and could not bestow his labor upon them. It remained for the white man to transform natural resources into economic goods. This he has done not only by the use of muscular exertion but by the application of intelligence. Labor is never an end in itself; it is always a means to an end, and this end is the satisfaction of human demands.
The simple and complex forms of division of labor.
Division of Labor.—In applying their labor to natural resources men soon found that the best results could be obtained by apportioning different tasks to different workers. This is called the division of labor and it has been one of the great factors in the progress of production. In its simpler form, division of labor merely meant that each workman confined himself to a simple occupation and carried through all the processes of production in that particular trade. The cloth-maker, the shoemaker, the implement-maker performed all the work of making cloth, shoes, or implements from start to finish. This simple division of labor was practiced in very early times. But as the world moved forward a more complex division of labor developed and this is particularly a feature of modern production. In this development the individual worker is assigned to make only a part of a commodity. The making of cloth is no longer a trade, but embodies a series of trades—that of the wool-carder, the spinner, the weaver, the fuller, the dyer, and the finisher. In the modern shoe factory one employee cuts the sole, another trims it, a third turns the heels, a fourth sews the uppers to the sole, and so on. There are more than twenty distinct operations in the making of a factory shoe, each requiring special skill on the part of the worker.
In the time of the Roman empire it is said that only thirty-seven different trades and professions were in existence. Today the number runs into the thousands. It would be practically impossible to make a list of them all. This is the age of specialists. Men no longer call themselves shoemakers but cutters, lasters, welters, sole-makers. Even in the engineering profession we have electrical engineers, civil engineers, mechanical engineers, locomotive engineers, stationary engineers, mining engineers, marine engineers, and chemical engineers.
Advantages and Disadvantages of Division of Labor.—Division of labor has brought many economic advantages. It enables the worker, by constant practice at a single operation, to acquire skill and dexterity. It enables almost every worker to find some task that he is able to do and for which he has a special liking or aptitude. It stimulates the invention of new processes and methods by reducing each operation to the simplest possible form, at which point it can often be taken over by machinery.
But the elaborate division of labor which marks modern industry also has its defects. It increases the monotony and irksomeness of labor. It prevents the development of all-round craftsmen, men who can turn their hands to a variety of things. Hence when a worker in modern industry loses his regular employment it is difficult for him to change to anything else. Confining men and women to a single, simple task day after day and year after year tends to narrow them; it certainly does not conduce to the extension of their intelligence. No great inspiration comes from his work to the man who spends his life in making the nineteenth part of a pin.[[13]] Division of labor has come to stay, however, and in spite of all these disadvantages the world is on the whole far better for its coming. It has made the production of goods so much easier that to give it up now would carry the world back to primitive conditions and lower the standard of living.
Our aim should be to utilize all its advantages while reducing its evils to the minimum. This we may hope to do by several methods; for example, by reducing the daily hours of labor, by promoting vocational education, by the restriction of child employment, by a better organization of the labor market (see p. [418]), and by providing wholesome recreation for the workers.