In the 1600s and 1700s in England, prominent writers such as Daniel Defoe argued that the wages of laborers should be kept low. If wages were too high, laborers would only work a few days a week and be idle the rest of the time.
“There is a general taint of slothfulness upon our poor,” wrote Defoe in 1704; “there’s nothing more frequent than for an Englishman to work until he has got his pocket full of money, and then to go and be idle, or perhaps drunk, till ‘t is all gone.”[1] And in 1771 Arthur Young wrote: “Everyone but an idiot knows that the lower classes must be kept poor or they will never be industrious.”[2]
This was part of the mercantilist mindset, said Edgar S. Furniss in 1920 in a book that I discussed earlier in a different context.
The prevailing view was that labor had what economists call a “backward-bending supply curve.” As wages went up—which normally would draw in more supply—a good portion of the work force worked less, not more. Apparently, they didn’t need more.
Why Early Industrial Workers Didn’t Work Much
But there was actually a good reason they might not need more. There wasn’t much to buy. They couldn’t go down to the local Best Buy for gadgets or go over to Starbucks for a cup of coffee. It wasn’t until coffee, tea, and gadgets became options that workers began voluntarily to work more. Continue reading “Why Work If You Can’t Buy Anything?”