George mentions how , "whether the capital ever does limit the productiveness of industry, and thus fix a maximum which wages cannot exceed, it is evident that it is not from any scarcity of capital that the poverty of the masses in civilized countries proceeds. Wages are what laborers get after all that they do, but depending on the capital there could be restrictions on laborers and their work. With all of the restrictions, they cannot get higher wages. There is a theory that wages depend on the ratio between the number of laborers and the amount of capital that is devoted to employment. The reason for that is because the author mentions that many people who hold the capital are the ones who employ labor and pay the wages.
0 Comments