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Hobson, John A., 1858-1940

"Problems of Poverty"


Part of the "service" thus rendered by the sweater is doubtless that he
acts as a screen to the employing firm. Public opinion, and "the
reputation of the firm," would not permit a well-known business to
employ the workers _directly_ under their own roof upon the terms which
the secrecy of the sweater's den enables them to pay. But in spite of
this, whether the "Jew sweater" is really a competent tailor or is a
mere "organizer" of poor labour, it should be distinctly understood that
he is paid for the performance of real work, which under the present
industrial system has a use.
Sec. 6. Different Species of Middlemen.--It may be well here to say
something on the general position of the "middleman" in commerce. The
popular notion that the "middleman" is a useless being, and that if he
could be abolished all would go well, arises from a confusion of thought
which deserves notice. This confusion springs from a failure to
understand that the "middleman" is a part of a commercial System. He is
not a mere intruder, a parasitic party, who forces his way between
employer and worker, or between producer and consumer, and without
conferring any service, extracts for himself a profit which involves a
loss to the worker or the consumer, or to both. If we examine this
notion, either by reference to facts, or from _a priori_ consideration,
we shall find it based on a superstition. "Middleman" is a broad generic
term used to describe a man through whose hands goods pass on their way
to the consuming public, but who does not appear to add any value to the
goods he handles.


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