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Importance of Marketplace

Henry George: The Condition of Labor — An Open Letter to Pope Leo XIII in response to Rerum Novarum (1891)

In the Encyclical however you commend the application to the ordinary relations of life, under normal conditions, of principles that in ethics are only to be tolerated under extraordinary conditions. You are driven to this assertion of false rights by your denial of true rights. The natural right which each man has is not that of demanding employment or wages from another man; but that of employing himself — that of applying by his own labor to the inexhaustible storehouse which the Creator has in the land provided for all men. Were that storehouse open, as by the single tax we would open it, the natural demand for labor would keep pace with the supply, the man who sold labor and the man who bought it would become free exchangers for mutual advantage, and all cause for dispute between workman and employer would be gone. For then, all being free to employ themselves, the mere opportunity to labor would cease to seem a boon; and since no one would work for another for less, all things considered, than he could earn by working for himself, wages would necessarily rise to their full value, and the relations of workman and employer be regulated by mutual interest and convenience.

This is the only way in which they can be satisfactorily regulated.

Your Holiness seems to assume that there is some just rate of wages that employers ought to be willing to pay and that laborers should be content to receive, and to imagine that if this were secured there would be an end of strife. This rate you evidently think of as that which will give working-men a frugal living, and perhaps enable them by hard work and strict economy to lay by a little something.

But how can a just rate of wages be fixed without the “higgling of the market” any more than the just price of corn or pigs or ships or paintings can be so fixed? And would not arbitrary regulation in the one case as in the other check that interplay that most effectively promotes the economical adjustment of productive forces? Why should buyers of labor, any more than buyers of commodities, be called on to pay higher prices than in a free market they are compelled to pay? Why should the sellers of labor be content with anything less than in a free market they can obtain? Why should working-men be content with frugal fare when the world is so rich? Why should they be satisfied with a lifetime of toil and stinting, when the world is so beautiful? Why should not they also desire to gratify the higher instincts, the finer tastes? Why should they be forever content to travel in the steerage when others find the cabin more enjoyable?

 

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