The worker in modern economic society

Front matter

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Chapter I. Human Nature and Evolution

A. Introductory

1. The Great Society. Graham Wallas . 7

2. The Economist’s Concern with Human Nature. Rexford G.

Tugwell .10

3. What a Study of Human Behavior Involves. John B. Watson 12

B. Glimpses of Social Change

4. The Meaning of Human Evolution. Vernon Kellogg . . 14

5. How Civilization Changes. A. A. Goldenweiser .... 16

6. The Influence of Tools on Man’s Development. 0 . G. S.

Crawford .18

Problems on Chapter i.21

Chapter II. Some Important Aspects of Human Behavior

1. Sources of Human Energy

a) The Energies of Men. William James .24

h) Mental Aspects of Fatigue. Frank Watts .26

2. The Nature and Importance of Habit

a) The Functions of Habit. William James .28

h) Habit in Social Life: the Folkways and Mores. W. G. Sumner .29

3. Three Types of “Emulation.” C. H. Cooley .31

4. The “Herd” Tendencies in Industry. Frank Watts ... 33

5. The Nature and Function of Rational Thought

a) The Nature of Judgment. John Dewey .36

h) Reason as a Guiding Force. E. L. Thorndike .... 39

c ) How Our Desires Influence Our Reason. W. F. Ogburn . 42

6. Individual Differences

a) Differences in General Character and Intelligence. Irwin

Edman .44

b ) Differences in Special Capacities. Bernard Muscio . . 46

c) An Intelligence Rating by Occupations. Memoirs National

Academy of Sciences .48

Problems on Chapter ii 50

. xv

XVI

Chapter III. Theories of Human Nature as Tools for Under¬ standing Industrial Relationships page

1. Human Behavior in Terms of Wish-Fulfilment. Thos. D. Eliot 53

2. A Psychological Analysis of Industrial Unrest. Carleton H.

Parker . 59

3. Human Nature as a Product of Training and Environment

a) Nature Less Important than Nurture. W. C. Mitchell 64

h) Changing Human Nature. John Dewey .65

Problems on Chapter iii.69

Chapter IV. Glimpses of Some Diverse Types of “Work-Organi¬ zation”

1. The Greek Artisan. Alfred Zimmern .77

2. The Siberian Convict. Fyodor Dostoievsky .80

3. American Slave Economy. John Elliot Cairnes .... 83

4. The Economic Society of the Incas. William H. Prescott . 85

5. A Glimpse of Production in the Handicraft Period

a) The Emergence of “Industry” in the Twelfth Century.

W. J. Ashley .89

h) The Control of Craft Industry. L. F. Salzmann ... 90

c) An Appraisal of Apprenticeship. E. Lipson .... 91

d) Church Authority and the “Just Price.” W. J. Ashley . 94

Problems on Chapter iv.97

Chapter V. The Worker and the Coming of Capitalism

A. The Transition

1. The Beginnings of the Revolution.101

2. The New Differentiation of Classes. George Unwin . . . 103

3. Subsequent Changes in the Internal Organization of Industry.

John A. Hobson .105

4. The Advent of the Machine

a) The Great Inventions. L. C. A. Knowles .108

b ) Occupational Estimates of English Population in 1688 and

1769. John A. Hobson .no

c ) English Population in Mining and Manufacturing Areas,

1851-1901. Arthur L. Bowley .m

d) Population of England and Wales, 1700-1911. Census . 112 xvii

B. The Worker and the New Technique

Skill and the Machine

a) Science Succeeds Rule of Thumb. Karl Marx

b) The Iron Man. Arthur Pound .

Some Indirect Effects of Machine Technique

a) The Reign of Standardization. Thorstein Veblen . ..

b) The Influence of Mechanical Communication. C. H. Cooley The Change in the Life of the Operative

a) The Hand-Loom Weaver. S. J. Chapman ....

b) The New Industrial Town of the Early Nineteenth

Century. JL. and Barbara Hammond .124

PAGE ii5

C. The Worker and the New Commercial Organization

8. The Commercial Revolution and Population

a) The Drift to the Towns. L. C. A. Knowles . . . . 126

b) Shifts in Occupational Groups. John A. Hobson . . . 127

9. The New Capitalism

a) The Meaning of an International Market. J. M. Keynes . 129

b) Wanted—A New Terminology. Ramsay Muir . . . 132

D. The Change in Social Ideas

10. The Reign of Laissez Faire. J. L. and Barbara Hammond . 136

11. The Growth of State Action and Voluntary Association.

J. F. Rees .139

12. American Social Ideas during the Last Half-Century. C. E.

Merriam .140

13. The Influence of Science on Social Ideas. Winterton C. Curtis 143

Problems on Chapter v.145

Chapter VI. Economic Development in America

A. The American Heritage

1. The Influence of the American Frontier. F.J. Turner . . 150

2. Immigration and the Development of the Capitalistic Spirit in

America. Werner Sombart .154

3. American Political Presuppositions. A. C. McLaughlin . . 155

B. The Development of American Industry

4. Transportation and Communication

a) A Survey of the Effects of Transportation Development.

Senate Committee Report .158

-b) The Influence of the Railway on the Lives of the Working

Population. Selected .160

5. Changes in Economic Structure page

a) The Difficulties of Early Industry. Malcolm Keir . . 161

b) The Development of the Steel Industry. Malcolm Keir . 164

C. A Typical Industrial Case

6. The Boot and Shoe Industry. Blanche Evans Hazard

a) The Stages of Growth.-.167

b ) Characteristics of the Early Industry.169

c) Changes in Machinery and Processes.172

d ) Capital Invested, Output, and Number of Workers

Employed.174

/ D. Modern Occupational Groups: A Statistical Analysis

v 7. Economic Classes in the United States. Alvin H. Hansen . 176

8. A Classification by Sex.182

9. A Classification by Residence: Urbanization.183

10. Changes in Size and Organization of Industries . . . .184

11. Changes in Farm Tenure, Size, and Organization . . . . 187

12. Racial Elements in the American Population, with Especial Attention to Wage-Earners

a) The Negro Population. W. S. Rossiter .188

b) The Trend of Immigration.189

c) An Analysis of the Old and New Immigration. Jeremiah

W. Jenks and W. Jett Lauck .190

Problems on Chapter vi.194

Chapter VII. Market Factors and Forces

A. Introduction

1. A Glimpse of the Origins of the Wage System. C. N.

Hitchcock .203

2. The Partial Maintenance of “Status.” Henry Clay . . . 208

B. Bargaining Factors

3. The Meaning of “Wages.” Henry Clay .212

4. “Labor” Distinguished from Commodities. Henry Clay . . 214

5. For What Does the Employer Pay ?

a) Wages versus Labor Cost. James Gunnison . . . . 215

b) The “Economy of High Wages.” J . A. Hobson . . . 216

c) Some Attempts to Define “Skill” and “Worth.” Frank J.

Becvar and R. M. Hudson .219 xix

C. Underlying Market Forces

6. The Higgling of the Market. Sidney and Beatrice Webb

7. Does “Individual Bargaining” Still Exist? New Republic

8. The Leveling Force of the Machine. Arthur Pound . .

9. The Influence of the Business Cycle. W. C. Mitchell . .

xo. Immigration and the Labor Market

a) An Official View. Immigration Commission

b) An Organized Labor View. John Mitchell ....

Problems on Chapter vii.

Chapter VIII. A Survey of Wage Theory PAGE

A. Some Systematic Wage Theories

1. The Subsistence Theory of Wages. David Ricardo . . . 239

2. A Statement and Criticism of the Wage-Fund Theory. Francis

A. Walker .241

3. The Influence of the Older Theories. Sidney and Beatrice

Webb .244

4. The Residual Claimant Theory. Francis A. Walker . . . 247

5. The Marginal Productivity Theory. Thomas N. Carver . . 249

6. Some Assumptions of the Productivity Theory. Henry Clay 256

B. Standards of Wage Adjustment

7. The Question of Equity in Economic Remuneration. Edwin

Cannan .258

8. The War-Time Search for “Standards” . A. M. Bing . . 262

9. The Irrational Nature of Wage Differentials. H. B. Drury . 265

10. Standards in Wage Revision. Leo Wolman .266

Problems on Chapter viii. 269

Chapter IX: Standards of Living: The Distribution of Wealth and Income : Wages and Earnings

A. Standards of Living

1. A Description of Standards of Living. Dorothy W. Douglas

a) Definition of Standard of Living.272

b) Historical Development of Budgets.274

^2-.- Changes in the Cost of Living, 1913-1922. Monthly Labor

Review .287

3. The Problem of Variations in Size and Composition of the

Family.288

B. The Distribution of Wealth and Income

4. The Distinction between Wealth and Income.290

5. The Distribution of Wealth in Different Countries. W. I.

King .

XX

6. The Distribution of Wealth in Massachusetts at Different page

Periods. W. I. King ..292

7. The Probable Distribution of Income in England in 1906.

L. G. Chiozza-Money . . . ..292

8. A Study of the Total National Income in the United States.

National Bureau of Economic Research .294

C. Wages and Earnings

9. Weekly Earnings and Yearly Income. Collated from various sources c ) Average Annual Earnings in Selected Industries . . . 306

10. Wages in Relation to the Cost of Living and the Product of Industry

a) The Relative Movement of Real Wages, 1890-1918. P. H.

Douglas and Francis Lamberson .307

b ) Relative Real Yearly Incomes of Wage-Earners, 1909-1919.

National Bureau of Economic Research .313

c) Labor’s Share in the Increased Productivity of Industry.

George Soule . 313

11. Some Effects of Low Wages.317

Problems on Chapter ix.319

Chapter X. Women’s Work and Wages

1. The Number and Distribution of Women Gainfully Employed

in 1920. United States Women’s Bureau .324

2. Women’s Wages in the United States. C. E. Persons . . 325

3. Women’s Wages Since the War

a) Wages and Hours of Labor in 1919. P. H. Douglas . . 332

b) Wages and Hours in Rhode Island. United States Women’s

Bureau .333

c ) Wages in Kansas. United States Women’s Bureau . . 336

d) Wages and Hours in Georgia. United States Women’s

Bureau .336

4. Principles of Fixing Women’s Wages. Mrs. Sidney Webb . 339

5. The Dependents of Women Workers. B. S. Rowntree and

F. D. Stuart . 342

6. A Minimum Budget for Working Women in 1919. Dorothy W.

Douglas .345

Problems on Chapter x.346 xxi

Chapter XI. Hours of Labor

1. The Movement toward Shorter Hours.348

2. The Eight-Hour Day Versus the Eight-Hour Basic Day.

Metal Trades Review . . .350

B. Arguments for and against Shorter Hours

3. The Citizenship Argument for a Shorter Day

a) An Illustration of the Effects of the Long Day. Interchurch

World-Movement .351

b) Mr. Gompers’ Argument. Samuel Gompers . . . .353

4. A Reduction of Hours an Increase of Wages. Ira Stewart . 353

5. Shorter Hours and Unemployment. Samuel Gompers . . 356

6. The Effect of Shorter Hours upon Production

a) Mr. Gompers’ Argument. Samuel Gompers . . . . 357

b) An American Experiment. Ethelbert Stewart . . . . 357

c ) The British War-Time Experience. British Health of

Munition Workers Committee .358

d) An Investigation by an American Employers’ Association.

National Industrial Conference Board .361

Problems on Chapter xi . . . *.362

Chapter XII. A Wage Case

1. The Bituminous Coal Award of 1920

A. The Majority Report. H. M. Robinson and R. Peale . . 366

B. The Minority Report. John P. White .374

Problems on Chapter xii.' . . . 383

Chapter XIII. General Considerations

1. Securities in Modern Achievements and Methods. Willard E.

Atkins .388

2. The Imminence of Fear. W. L. M. King .392

Instability of the Modern Worker. Frank Tannenbaum . . 393

4. Fear as a Breeder of Warfare. W. L. M. King .... 395

5. The Risks of the Worker.395

Problems on Chapter xiii.397

Chapter XIV. Accidents

1. Extent of Industrial Accidents a) General. W. J. Lauck and Edgar Sydenstricker ... . 401

XXII b ) Fatal Industrial Accidents. The Prudential Life Insurance

Company .

c ) Distribution of Injuries. Massachusetts Industrial Accident

Board .

d) Duration of Disability. Massachusetts Industrial Accident

Board .

e) Cost of Accidents in 1919. Federated American Engineering

Societies .

2. Effect of Accidents on Wages. Robert M. Woodbury .

3. Consequences of Industrial Accidents. W. J. Lauck and

Edgar Sydenstricker .

4. Causes of Accidents

a) Fatigue. Monthly Labor Review .

b) Interdependence. Crystal Eastman .

c) The Spirit of the Game. Crystal Eastman ....

d) Violation of Rules. Crystal Eastman .

5. The Common Law and Accidents

a) The Fellow Servant Doctrine. 205 Illinois Reports 206

b) Assumption of Risk. 29 Connecticut Reports 548 .

c ) Contributory Negligence. 231 Pennsylvania State Reports

585 .•.

6. Early Workmen’s Compensation Legislation. 201 New York

7. Provisions of Workmen’s Compensation Acts. United States

Bureau of Labor Statistics .

8. Merits of Different Insurance Systems. Carl Hookstadt .

9. Shortcomings in Workmen’s Compensation

a) Effect of Weekly Maximum. Carl Hookstadt

b) Administration and Politics. Carl Hookstadt

c) Rating Methods and Lack of Experience. National Workmen’s Compensation Service Bureau ....

d) Attention to Rehabilitation. Will J. French

e) Lacks in Compensation. Royal Meeker .

10. Accident Prevention. Lee K. Frankel and Alexander Fleisher Problems on Chapter xiv.

PAGE

404 407

408 411

4 1 3

416 421

426 426 428 430

Chapter XV. Occupational Disease and Sickness

1. Occupational Diseases and Workmen’s Compensation Acts.

Carl Hookstadt . ( . 434

2. Sickness among Wage-Earners. American Association for

Labor Legislation .436

3. Possible Savings from Health Supervision. Federated Ameri¬ can Engineering Societies . 439

4. Responsibility for Disease

a) Working, Living, and Community Conditions. Illinois

Health Insurance Commission .

h) General Health and Industrial Fatigue. Eugene Lyman Fisk .

5. Carriers for Insuring against Wage Loss. American Associa¬ tion for Labor Legislation .

6. Organization of Medical Aid under Health Insurance.

Woodward and Warren ..

7. Arguments against Health Insurance

a) Dangerous in Principle. P. T. Sherman .

b) Does Not Reduce Sickness. National Industrial Conference

Board .

8. Health Insurance as a Preventive Measure. John R. Commons

9. Compulsory Health Insurance. Minority of the Illinois

Health Insurance Commission .

10. Health Insurance in Great Britain. Edith Abbott .... Problems on Chapter xv.

Chapter XVI. Old Age

1. Prevalence of Old Age Poverty. Massachusetts Commission

on Old Age Pensions .

2. Cost of Indifference to Old Age. Abraham Epstein .

3. Old Age, Poverty and Modern Industry. Pennsylvania Com¬ mission on Old Age Pensions .

4. Methods of State Insurance for Old Age. Ohio Health and

Old Age Insurance Commission .

5. Some Objections to a Non-Contributory System. M. B.

Hammond .

Problems on Chapter xvi.

Chapter XVII. Unemployment

1. Definition of Unemployment. Percy Alden .

2. Fluctuations in Unemployment

a) Unemployment in the United States, 1902-17. Hornell

Hart .

b) Massachusetts, New York and Wisconsin. Ernest R. Brad¬ ford .

c ) Unemployment and the Business Cycle. United States

Bureau of Labor Statistics .

3. Seasonal and Intermittent Unemployment

a) Extent. John Koren and others .

b) The New York Garment Industries. N. I. Stone .

c) Intermittent Employment. John Koren and others .

xxm

PAGE

447 449

452 458

XXIV io d) Comparative Unemployment in the United States, Great Britain, and Germany. International Labor Conference

4. Effects of Unemployment

a) Some Social Effects. John L. Gillen .

b) Cumulative Effects. Joseph L. Cohen .

c ) Chronic Underemployment. J. H. Willits .

5. Trade Union Reaction to Unemployment. D. P. Smelser

6. Causes of Unemployment

a) Industrial Causes. Joseph L. Cohen .

c) Some Constant Causes. W. M. Leiserson .

d) The Textile Industry. J. H. Willits .

7. Lack of Elasticity of Working Hours. W. H. Beveridge

8. Unemployment and Credit. John R. Commons

9. Immigration and Unemployment. Federated American

Engineering Societies .

Suggested Modes of Action

a) Unemployment and the Business Cycle. Federated Ameri¬ can Engineering Societies .

b) Long-Range Planning of Public Works. President’s

Conference on Unemployment .

c ) Employment Exchanges. Federated American Engineering

Societies .

d) Public Employment Exchanges in the United States.

United States Employment Service .

The Employer and Unemployment Compensation. B. Seebohm Rowntree .

13. Unemployment Relief Measures in Great Britain

a) The British Unemployment Insurance Act. Joseph L.

Cohen .

b) Trade Unions under the British Act. Clarence H.

Northcott .

c) Unemployment Cases under the British Act. Joseph L.

Cohen .- .

Some Difficulties in Unemployment Insurance. I. M. Rubinow .

The Cleveland Guaranty Plant. The Cleveland Board of

Referees . . .

Problems on Chapter xvii.

References for Further Reading.

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5 ii

5 1 3 e

CONTENTS xxv

Part Five The Worker’s Approach To His Problems

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