The Wages System

 

AN ALPHABET OF ECONOMICS

A.R. Orage

Editor of The New Age

First published by T. Fisher Unwin Ltd., 1917

THE WAGES (or salary) SYSTEM

The first condition of the wage-system is that there shall be propertyless men – men, that is, with no access to the tools of production. This state is brought about by divers means in various times and places. In native communities our exploiting governors contrive it by robbing natives of their land or herds or trees, or, alternatively, by requiring payment in specie that can only be obtained by wage-labour. In civilised countries, the method is better concealed. Usually, however, the distinguishing feature is the enclosure of the common lands. Thus set out of the use of the necessary tools of production, the propertyless man, now become proletarian, must go and ask alms. But charity without work is demoralising, so they must work. Upon what? Upon and with the tools belonging to the more fortunate few who have retained their property. But there are so many of the workers – who among them shall find an owner to hire them? Why, the cheapest – those, in fact, who can shift on least wages. Wages thus tend to a minimum owing to the numbers of the proletariat. What, however, if they combine in unions and by all co-operating with each and each with all, fix a minimum price for their labour? Why, even then the resources of capitalist civilisation are not exhausted. If English workmen, let us say, can no longer be got cheap, foreign workmen of a cheap pattern can be imported. But public opinion will not allow much of this alien importation. Very well, Mahomet will go to the mountain. In other words, capitalist tools are sent where cheap labour abounds; and this is called foreign investment. (pp169-70)

COMMENT:

Orage is aware, so early in the century (1917), that ‘native communities’ were being forcefully exploited by the means outlined. I came across details of hut taxes and forced/exploited labour in so-called ‘underdeveloped’ countries during the 1990s, as if this was only just discovered. Vandana Shiva and others used the expression ‘mal-development’ for the ‘civilised’ countries who enclosed the land and excluded the people from their birthright, the common land.

Extract from AN ALPHABET OF ECONOMICS by A.R. Orage Editor of The New Age

First published by T. Fisher Unwin Ltd., 1917