[Problems of Poverty by John A. Hobson]@TWC D-Link bookProblems of Poverty CHAPTER IX 15/19
If, on the other hand, following the true line of temperance reform, you expelled intemperance by substituting for drink some healthier, higher, and equally strong desire which cost as much or more to attain its satisfaction; if in giving up drink they insisted on providing against sickness and old age, or upon better houses and more recreation and enjoyment, then their wages would not fall, and might even rise in proportion as their new wants, as a class, were more expensive than the craving for drink which they had abandoned. Or, again, take the case of technical or general education.
In so far as technical education enabled a number of men who would otherwise have been unskilled labourers, to compete for skilled work, it will no doubt enable these men to raise themselves in the industrial sense; but the addition of their number to the ranks of skilled labour will imply an increase in supply of skilled labour, and a decrease in supply of unskilled labour; the price or wage for unskilled labour will rise, but the wage for skilled labour will fall assuming the relationship between the demand for skilled and unskilled labour to remain as before.
A mere increase in the efficiency of labour, though it would increase the quantity of wealth produced, and render a rise of wages possible, would of itself have no economic force to bring about a rise.
No improvement in the character of labour will be effectual in raising wages unless it causes a rise in the standard of comfort, which he demands as a condition of the use of his labour.
If we merely increased the efficiency of labour without a corresponding stimulation of new wants, we should be simply increasing the mass of labour-power offered for sale, and the price of each portion would fall correspondingly.
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