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Hobson, John A., 1858-1940

"Problems of Poverty"

This constitutes
the pith of the economic objection raised against an eight hours day.
The eight hours advocates meet the objection in the following ways--
First, they deny that prices will rise in consequence of the increased
aggregate of wages. A reduction in interest and in wages of
superintendence will take place in many branches of industry, without
any appreciable tendency to diminish the application of capital, or to
drive it out of the country.
Secondly, the result of an increased expenditure in wages will be to
crush the small factories and workshops, which are the backbone of the
sweating System, and to assist the industrial evolution which makes in
favour of large well-organized factories working with the newest
machinery.
Thirdly, it is claimed that we shall not be ousted either from our own
or from foreign markets by foreign competition, because the eight hours
movement in England must be regarded as part of a larger industrial
movement which is proceeding _pari passu_ among the competing nations.
If the wages of German, French, and American workers are advancing at
the same rate as English wages, or if other industrial restrictions in
those countries are otherwise increasing the expenses of production at a
corresponding rate, the argument of foreign competition falls to the
ground.
These leading arguments of the advocates of an eight hours day are of
very unequal value. The first argument is really based upon the
supposition that the increased aggregate of wages can be "got out of
capital" by lowering interest and profits.


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