Page:Shop Talks on Economics.djvu/33

 city should cut rents down one-half. Suppose that Chicago had municipal ownership and it was possible for the city to reduce the cost of living here 50 per cent. What we want to consider is—would the reduction benefit the working class or that part of the capitalist class not directly engaged in producing the necessities of life?

When the cost of living is greatly reduced at any given city, workingmen and women flock to that point to sell their labor-power. They believe that if they can get jobs where it costs less to live, they will be able to save money and, perhaps, finally climb into the capitalist class themselves.

But note what happens. There is an immediate influx of workers into the city of low prices. The competition among workers for jobs becomes more keen at once, and it is always keen. Capitalists purchase labor-power at the lowest price. Men and women offer to sell their labor-power at a lower and still lower price till wages again fall to the cost of living. In a very short time these workers will find that they have gained nothing.

Take the examples of A, B and C. When the cost of living (A) is cut in half, the competition, among the sellers of labor-power, reduces wages (B) accordingly. If your capitalist employer is a steel manufacturer will he be able to appropriate more or less of the value of your product?

Capitalists rarely start industrial enterprises in