180 ROOT MATTERS IN SOCIAL AND ECONOMIC PROBLEMS. 



correct, it would seem to appear that certain Economists, as 

 well as their critic, Mr. Henry G-eorge, are wrong,* for if the 

 former may be justly accused of ignoring B a's part in the 

 production of wants in exchange (in their wages fund theory), 

 the latter errs quite as much in ignoring the vast part which 

 the increasing store of previous savings, or more or less 

 permanent ci'eations (anterior labour), represent in the 

 combination necessary to produce in sufficiency for all the 

 ordinary wants of exchange of human beings. 



Improvement in the Condition or the Individual 



Largely Due to the Savings of Anterior LABOutR 



(Capital) Skilfully Applied as Instruments Aiding 



Production. 



This solution of the vexed problem of the so-called " Wages 

 Fund " is, moreover, in harmony with all related facts, and it 

 clearly establishes the important truth that it is to pre- 

 served previous savings (anterior labour) skilfully applied, 

 that the powers to further increase of production per head is 

 mainly secured ; for if the increase in appropriation to neces- 

 sary machines and instruments be only proportionate to 

 increase in mouths to be fed, there would be no improvement 

 in the appropriation of wants per individual, even though 

 "each mouth" be accompanied by "two more hands," as 

 urged by some. It follows, therefore, that if the individual 

 necessary wants be now better supplied than in former times, 

 it must either be due to relative diminution of the mouths to 

 be fed, or to the multiplication of productive power (anterior 

 labour) largely due to the great advances made in recent 

 years in the power which man has obtained over the forces 

 of Nature. As it is undeniable that population has largely 

 increased since the beginning of the eighteenth centmy, and 

 as it is also demonstrable, notwithstanding the great simul- 

 taneous increase in population, that the supply of wants per 

 head, rich and poor, have also materially improved, while the 

 hours of labour have been shortened, it follows logically that 

 this improvement, in the aggregate and per head, is entirely 



* The admirably expressed views of Bastiat, however, are in entire accord with 

 these views. 



Thus Bastiat writes (p. 43, " Wages— Harmonies of Political Economy "):—" As 

 capital is nothing else than human services, we may say that capital and labour are 

 two words which in reality express one and the same idea ; and consequently the 

 same thing may be said of interest and wages. Thus, where false science never fails 

 to find antagonism, true science ever finds identity. 



" Considered, then, with reference to their origin, nature, and form, wages have in 

 them nothing degrading or humiliating any more than interest has. Both constitute 

 the return for present and anterior labour derived from the results of a common 

 enterprise. Only it almost always happens that one of the two associates agrees to 

 take upon himself the risk. If it be the present labour which claims a uniform 

 remuneration the chances of profit are given up in consideration of wages. If it be 

 the anterior labour which claims a fixed return, the capitalist gives up his eventual 

 chance of profits for a determinate rate of interest.' 



