The Economic Case for Generous Wages
Adam Smith asks employers to pay the most generous wages their finances will allow.
1776
Adam Smith asks employers to pay the most generous wages their finances will allow.
1776
Adam Smith would not have liked the so-called Living Wage. ‘Law can never regulate wages properly,’ he wrote, ‘though it has often pretended to do so.’ But he did like generous wages, out of hard-headed business sense - an argument much more likely actually to raise wages than merely cost jobs.
abridged
THE liberal reward of labour increases the industry of the common people. The wages of labour are the encouragement of industry, which, like every other human quality, improves in proportion to the encouragement it receives.
A plentiful subsistence increases the bodily strength of the labourer, and the comfortable hope of bettering his condition, and of ending his days, perhaps, in ease and plenty, animates him to exert that strength to the utmost.
Where wages are high, accordingly, we shall always find the workmen more active, diligent, and expeditious, than where they are low. That men in general should work better when they are ill fed, than when they are well fed, when they are disheartened than when they are in good spirits, when they are frequently sick than when they are generally in good health, seems not very probable.
abridged
1. What is the author aiming to achieve in writing this?
2. Note any words, devices or turns of phrase that strike you. How do they help the author communicate his ideas more effectively?
3. What impression does this passage make on you? How might you put that impression into words?
Based on The English Critic (1939) by NL Clay, drawing on The New Criticism: A Lecture Delivered at Columbia University, March 9, 1910, by J. E. Spingarn, Professor of Comparative Literature in Columbia University, USA.