The Labour Problem Blog
The Labour Problem Blog
The Labour Problem Blog
"The Labour Problem" is a major problem and term widely used toward the turn of the twentieth
century with various applications not only on printing industry but also in all the other industries.
It has been defined in many ways, such as "the problem of improving the conditions of
employment of the wage-earning classes." It encompasses the difficulties faced by wage-earners
and employers whom began to cut wages for various reasons including increased technology,
desire for lower costs or to stay in business. It was a nationwide problem that spanned nearly all
industries and helped contribute to modern business conditions still seen today.
CAUSES:
At the turn of the century machines were beginning to take a stronger footing in the economy,
which drove costs down. Always trying to maximize profits, employers saw fit to lower wages
for two main reasons. Machines were making the production process cheaper meaning wages
took up a bigger percentage of costs, and when times were particularly tough, it made sense to
cut wages to stay in business. This depersonalization of the production process meant that people
essentially became expendable. People were not eliminated completely but there was a
significant jobless. This led to lower wages in the long run because fixed costs decreased (with
increased technology) so employers saw fit to cut wage expenses for this now partially
expendable labour force. Although the problem spanned many industries, they were not all
concerned with the same problems.