172
the competing industries of foreign countries possess. The opera-tive must pay for finding the most capable employers (4).
As profits thus approach a minimum boundary, wages becomemore and more dependent on prices, and consequently on theposition of the world’s market. Whilst in the former stages ofdevelopment legislative measures could accelerate the alterationmentioned in favour of labour, profit now tends, like interest, tobecome a permanent power, but wages to rise only by increase ofthe total production. Legislative measures cannot provide thisincrease. Since the state of trade partly re-acts upon wages, inthe same way the premium on risk, which is contained in theprofit, falls (5).
From what has been said we can deduce the following proposi-tions : —
(a) Within a defined product the amounts falling to capitalas well as labour absolutely decrease with the development ofcentralised industry—cheapening of production in favour ofthe consumer.
(b) The amount within, a defined product falling to capitalnot only decreases absolutely, but also relatively in proportionto that upon labour.
(c) The amount within a defined product falling to labourcertainly decreases, but relatively, on the other hand, increases.
(d) The increase of national total production in itself makespossible greater amounts absolutely for labour and capital. Onthe other hand, the share for capital falls relatively, that forlabour increases relatively.
Labour ever receives a. greater share of national total produc-tion. It receives more and more of the balanee which remainsafter paying the amounts falling to' interest and profit.
The social consequence of the economical development heredepicted is a levelling-up of extremes of properly. So far fromthe rich becoming richer and the poor poorer, just the reverse is
4. Compare a similar view of the well-known E. Atkinson: “Distributionof Profits.” p. 70. “ Wages are the remainder after profits are paid,” pp. 178
and 179.
5 Schmoller “ Ueber die Entwicklung des Grosshetriebs und die socialeXlassenbildnng.” “ Share capital, the capital of sleeping partners, also expectsreally nothing more than payment of interest. This capital retreats more andmore from the ruling position.” “ Prenss. Jahrb , vol. 69, part 4.”