HKB
dismiss its employees at discretion without sacrificing invested capital, and gets its work done much more cheaply than is possible with slave labour, as Adam Smith comfortingly pointed out. {80}
Hence it follows, too, that Adam Smith was perfectly right in making the assertion: "That the demand for men, like that for any other commodity, necessarily regulates the production of men, quickens it when it goes on too slowly, and stops it when it advances too fast." Just as in the case of any other commodity! If there are too few labourers at hand, prices, i.e. wages, rise, the workers are more prosperous, marriages multiply, more children are born and more live to grow up, until a sufficient number of labourers has been secured. If there are too many on hand, prices fall, want of work, poverty, and starvation, and consequent diseases arise, and the "surplus population" is put out of the way. And Malthus, who carried the foregoing proposition of Smith farther, was also right, in his way, in asserting that there are always more people on hand than can be maintained from the available means of subsistence. Surplus population is engendered rather by the competition of the workers among themselves, which forces each separate worker to labour as much each day as his strength can possibly admit. If a manufacturer can employ ten hands nine hours daily, he can employ nine if each works ten hours, and the tenth goes hungry. And if a manufacturer can force the nine hands to work an extra hour daily for the same wages by threatening to discharge them at a time when the demand for hands is not very great, he discharges the tenth and saves so much wages. This is the process on a small scale, which goes on in a nation on a large one. The productiveness of each hand raised to the highest pitch by the competition of the workers among themselves, the division of labour, the introduction of machinery, the subjugation of the forces of nature, deprive a multitude of workers of bread. These starving workers are then removed from the market, they can buy nothing, and the quantity of articles of consumption previously required by them is no longer in demand, need no longer be produced; the workers previously employed in producing them are therefore driven out of work, and are also removed from the market, and so it goes on, always the same old round, or rather, so it would go if other circumstances did not intervene. The introduction of the industrial forces already referred to for increasing production leads, in the course of time, to a reduction of prices of the articles produced and to consequent increased consumption, so that a large part of the displaced workers finally, after long suffering, find work again. If, in addition to this, the conquest of foreign markets constantly and rapidly increases the demand for manufactured goods, as has been the case in England during the past sixty years, the demand for hands increases, and, in proportion to it, the population. Thus, instead of diminishing, the population of the British Empire has increased with extraordinary rapidity, and is still increasing. Yet, in spite of the extension of industry, in spite of the demand for working-men which, in general, has increased, there is, according to the confession of all the official political parties (Tory, Whig, and Radical), permanent surplus, superfluous population; the competition among the workers is constantly greater than the competition to secure workers.