Chapter 12

THE JUST REWARD OF LABOUR AS ESTIMATED BY ITS ACTUAL PRODUCTS

Modern socialists admit that of the wealth produced to-day labour does not produce the whole, but that some part is produced by directive ability. But they contend that labour produces more than it gets. We can only ascertain if such an assertion is correct by discovering how to estimate with some precision the amount produced by labour and ability respectively.

But since for the production of the total product labour and ability are both alike necessary, how can we say that any special proportion of it is produced by one or the other?

J.S. Mill's answer to this question.

The profound error of Mill's argument.

Practically so much of any effect is due to any one of its causes as would be absent from this effect were the cause in question taken away. Illustrations.

Labour itself produces as much as it would produce were there no ability to direct it.

The argument which might be drawn from the case of a community in which there was no labour.

Such an argument illusory; for a community in which there was no labour would be impossible; but the paralysis of ability, or its practical non-existence possible.

Practical reasoning of all kinds always confines itself to the contemplation of possibilities. Illustrations.

Restatement of proposition as to the amount of the product of labour.

The product of ability only partially described by assimilating it to rent.

Ability produces everything which would not be produced if its operation were hampered or suspended.

Increased reward of labour in Great Britain since the year 1800. The reward now received by labour far in excess of what labour itself produces.

In capitalistic countries generally labour gets, not less, but far more than its due, if its due is to be measured by its own products.

It is necessary to remember this; but its due is not to be measured exclusively by its own products.

As will be seen in the concluding chapter.