[Problems of Poverty by John A. Hobson]@TWC D-Link book
Problems of Poverty

CHAPTER VI
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Nor can it be eluded by supposing that the public may use the unemployed labour either in producing some new utility for the public use, such as improved street-paving, or a municipal hot-water supply.

For if such undertakings are of a character which a private company would regard as commercially sound, they ought to be, and will be, undertaken by wise public bodies independently of the consideration of providing work for unemployed.

If they are not such as would be considered commercially sound, then in so far as they fall short of commercial soundness, they will be "charity" pure and simple, given as relief is now given to able- bodied paupers, on condition of an expenditure of mere effort which is not a commercial _quid pro quo_.
If the State or municipality were permitted to conduct business on ordinary commercial principles, it might indeed be expected to seize the opportunity afforded by a large supply of unemployed labour, to undertake new public works at a lower cost than usual.

But to take this advantage of the cheapness of labour is held to be "sweating." Public bodies are called upon to disregard the rise and fall of market wages, and to pay "a fair wage," which practically means a wage which is the same whether labour is plentiful or scarce.

This refusal to permit the ordinary commercial inducement to operate in the case of public bodies, cuts off what might be regarded as a natural check to the accumulation of unemployed labour.


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