“Higher wages for the workers slow the growth of the economy,” according to many employers. These words are not new- in fact, these words have been spoken by both anti-union bosses and even Socialists alike. In this essay, Marx responds to a member of the latter, John Weston, and exposes this false notion. According to this argument, called the “wage fund theory,” an increase in the worker’s wages results in an increase in necessary commodities, like meat, soap, gas, and others, thus increasing the cost for everyone. Thus, wages determine prices - a change in the amount of wages results in a change in the market value of commodities. In a limited sense, Weston is right. When the demand for necessities goes up, it is only natural that the price goes up as well, since there are more buyers and the quantity of necessities being produced remains the same, supposing that no change has happened in a factory’s machinery, or the number of workers employed, or in inflation or ...
Comments
Post a Comment