International Economics

Page 109

CHAPTER 7

Labor EVERYTHING IN THE D A V I D H U M E , 17 54

WORLD IS PURCHASED BY LABOR.

it adds to products, its cost, its availability, and its control—has always been the subject of management and government scrutiny. For centuries people lived in a very limited geographic environment, working primarily for the benefit of themselves and their immediate family. Often, birth, a life to full maturity, and death all took place within a few square kilometers. In feudal society, people were tied, by law, to a particular piece of land or job. In postfeudal society, as people ceased to work for themselves and became employed (from the Latin implicare meaning “to fold or bend”) by others, the need to move labor to specific areas became a means to increase productivity. Management (from the Latin manus meaning “hand”) began to treat labor as another resource to be acquired, utilized, and put to the task of generating profit—the true goal of business. Once that resource is used or becomes too expensive, it may be discarded. Newer, less expensive resources may be acquired locally by management, or the job itself may be moved elsewhere—perhaps to another country. Labor in this scheme could be treated like any other commodity. Labor can, for its part, refuse to work, change the company where its resource is applied, or even move itself across international borders (legally and illegally) in search of higher wages and better benefits. Like management, labor also retains a sizeable amount of political clout (e.g., Russian coal miners, French transport workers, Polish shipyard mechanics) and is capable of influencing government regulation. This chapter will look at how labor interacts with government and private enterprise to influence the global economy.

LABOR—THE VALUE

Technology & Mobility Technical innovation has always been a major factor in the way people work and how much work could be done. Ancient man’s invention of the animal-drawn plow freed up more people for other forms of labor (e.g., weaving, tanning). It greatly increased the amount (and types) of work a farm community could perform in one season. The impact of the Industrial Revolution (1750-1850), both good and bad, is well documented and forever changed the way people related to their work. The move from craftsman to employee was traumatic and complete. The technological revolution, which is driving today’s labor market, is having perhaps an even greater effect on how individuals, national populations, private enterprise, and governments approach the concept of labor.

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