Online Library of Liberty: Economics, vol. 2: Modern Economic Problems

below the competitive rate; and it gets the most stable results when wages are kept at or little above the competitive rate. Only exceptionally is the control of a labor organization in a trade so strong that it is able to maintain monopoly wages for long periods. An earnest effort on the part of the workers is necessary for them to get the share that true competition would accord them, but the attempt to force wages beyond that point must be the occasion of increasing friction. With so modest an ideal, however, as the true competitive wage, organized laborers and their leaders cannot be expected always to be content.

Aside from its effects upon the wage bargain, unionism finds its greatest justification is in its unspectacular fraternal, mutual-benefit, and educational functions. The chief forces favorable in the long run to wages that can be affected by organization are domestic peace, order, and security to wealth; honesty and good faith between worker and employer, in law-maker and in judge; efficiency and intelligence of the workers; and far-sighted social legislation. Some of these contribute to greater productiveness, others to a fairer distribution. In all these ways organized laborers have made valuable contributions, unfortunately neutralized in many cases by a narrow class outlook. Organized labor is here to stay for a long time to come, and as the élite of the wageearning class it should, and probably will, be an increasing force for political betterment and for social welfare in the republic.

References.

Adams, T. S. and Sumner, H. L., Labor problems, chs. VI, VII. N. Y. Macmillan. 1914.

Carlton, F. T., The history and problems of organized labor. Revised. N. Y. Heath. 1920.

Commons, J. R., and associates, History of labor in the United States. 2 vols. N. Y. Macmillan. 1918.

Commons and Andrews, Ch. III, sec. 1. Principles of labor legislation. Rev. ed. N. Y. Harpers.

Gompers, S., Labor and the common welfare. Pp. 306. New York. Dutton. 1919. (Extracts from Mr. Gompers’ articles and addresses made during the past thirty-five years.)

Groat, G. G., An introduction to the study of organized labor in America. N. Y. Macmillan. 1916.

Hoxie, R. F., Scientific management and labor. N. Y. Appleton. 1915. Hoxie, R. F., The truth about the I. W. W. J. P. E., 21: 785-797. 1913. Hoxie, R. F., Trade unionism in the United States. Pp. 426. N. Y. Appleton. 1917. (General character and types; the interpretation of union types.) McCabe, D. A., The standard rate in American trade unions. Balt. Johns Hopkins. 1912.

Mitchell, John, Organized labor. 1902.

Webb. Sidney and Beatrice, Industrial democracy. Pp. 899. N. Y. Longmans. 1920.

Same, History of trade unionism. Pp. 784. Revised edition. N. Y. Longmans. 1920.

Wolman, L., The boycott in American trade unions. Johns Hopkins. 1916.

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