WAGES are the price paid for labour. The labour of man, being an object of purchase and sale, has, like other commodities, a natural or cost price, and a market price. Its natural price is that which suffices to maintain the labourer and his family, and to perpetuate the race of labourers. The rate of wages cannot be permanently below this natu ral price, for if in any country labourers could not be maintained, they must cease to exist : they must be exterminated by famine, or be removed to some other country. If the price paid were only sufficient to maintain the labourer himself, without any family, he would be unable to marry, or his children would die of want. By these dis tressing causes the supply of labour would be reduced until the com petition of employers had raised the price of labour to its natural level. But although the natural price would thus appear to be that which only wards off starvation, there is, happily for mankind, a principle which tends to raise it to a much higher standard. Every mau desires to improve his condition, to enjoy more of the comforts and luxuries of life than have fallen to his lot, and to raise himself in the estimation of others. If he has accomplished this, he acquires habits of living which it is painful for him to forego. He endeavours to bring up his children with the same views and habits as his own, and feels it a degradation if they fall below the standard which he has himself attained. The necessary consequence of this tendency to social improvement is to cause prudence and forethought in marrying, and undertaking the support and settlement of a family. A labourer cannot well have too many wants. He should desire good food, good clothing, a cleanly and comfortable home, and education for his children. If the standard of wants could be universally raised, the natural price of labour would rise in proportion ; for if each labourer were determined not to render himself unable to gratify these wants, all could command the wages that would supply them. The degree in which this prin ciple operates determines the natural rate of wages and the condition of the working classes. Where it has no influence, as in many parts of Asia, the wages are only sufficient to support life upon the commonest food, and to provide the moat squalid clothing and habitations. In more civilised countries, the wants and prudence of the middle classes extend lower in the scale of society, and the labourers want more and enjoy more of the comforts and decencies of life.
The general market-rate of wages depends upon the ratio which the capital applied to the employment of labour bears to the number of labourers. If that ratio be great, the competition of capitalists must raise wages ; if small, the competition of labourers amongst each other, for employment, must reduce them. Whenever the accumula tion of capital is proceeding more rapidly than the increase of popula tion, wages will be on the increase, and the condition of the working classes will be continually improving, until some check has been given to the increase of capital, or until the growth of population (which is naturally encouraged by high wages) has altered the relative proportion of capital to labourers, and reduced the market-rate of wages to the natural rate. While the general rate of wages is regulated by these
muses, there are various circumstances which, by increasing or de creasing competition for employment, tend to raise or depress the wages paid to persona engaged in particular occupations. Some of the principal of these are 1. The agreeableness or disagreeableness of the employments.
2. The easiness or cheapness, or the difficulty and expense, of learning them.
3. Their constancy or inconstancy.
4. The small or great trust that must bo reposed in those who carry :hem on.
5. The probability or improbability of succeeding in them.' It is not uncommon to hear these circumstances stated as the direct ind immediate causes of high or low wages in particular employments ; La if in some cases employers voluntarily gave high wages, or the abourer could command them merely ou account of the nature of the !mployment. But the relation of supply to demand will influence vagea in particular employments, as it does the price of labour gene ally, and of other commodities; and the circumstances stated above vill obviously tend to increase or diminish the number of competitors or particular employments. More will naturally seek an agreeable tra le, easily learned, than one of it disagreeable character and difficult to learn. AU descriptions of skilled labour bear a higher price than unskilled labour. The expense of acquiring the knowledge of any art or trade would not be incurred at all, unless the person who had incurred it were better remunerated than others who have nothing to offer except their natural strength and intelligence, which is common to all men ; but many cannot incur the expense of learning a trade if they would; others are too indolent, too careless, or too Awkward ; and thus skilled workmen are not open to the tame unlimited competition as other classes of labourers, and are in a condition to command higher wages. Wherever uncommon skill, talent, or other advantages are required, the number of persons actually practising and living by an employment must be comparatively limited. Most persons are deterred from attempting to learn it by the fear of failure, and many who attempt it do not succeed in gaining their livelihood by it. The few who are really successful can then command an extraordinary reward for the exercise of their peculiar talents or acquirements. The world will enjoy the advantage of them at any price, not being satisfied with any less degree of excellence. Even if an unusual influx of skilled labourers into any employment should lower the rate of wages, this lower rate is not likely to continue very long, as the superfluous num ber would seek other employments which offered a higher reward. This result is facilitated by the fact, that the ordinarily high price of skilled labour causes a much more expensive mode of living, and thus raises the natural rate of wages of skilled labourers ; or, in other words, induces them to regard as necessaries a variety of comforts which are beyond the reach of common workmen.