 why.
Why do the owners of factories usually build them in small towns? Why are there so few factories in New York and Chicago?
Is the wage-worker exploited of his product at the mine or factory or is he CHEATED when he spends his wages for the necessities of life?
Before you reply to the above question, reply to the following:
What determines the value of your labor-power? What determines the value of any commodity?
Does A (the cost of living) have anything to do with the amount of B (wages) you will receive?
If B (wages) are not equal in value to A (the cost of living) will this mean that you HAVE NOT RECEIVED the value of your labor-power, or will it mean that the grocer, and butcher, and clothier are cheating you?
If wages (B) are reduced will your employer be able to appropriate more surplus value?
Owing to the improved methods of production the necessities of life are slowly decreasing in value. A contains less labor; is less valuable. Gold also is decreasing in value, contains less social labor. What would be the natural explanation of the fact that gold today exchanges for FEWER commodities than it did five years ago? Which would you expect to have decreased most in value–gold or the necessities of life?
If the necessities of life decreased FASTER than the value of gold decreased, would prices of the necessities fall? In this case B would be of more value than A. Would wages continue to be of more value than A for very long? Would general co-operatives for reducing the cost of living in America benefit the working class? Or would they tend to reduce wages? Why?
Will we have to exclude the natives of Central America from the United States in order to prevent them from competing with us to sell their labor-power? Or are they already taking jobs from American cotton workers even though working in Guatemala? Explain.
We have been considering Low Prices and their effect upon the working class. We discovered that, owing to the competition among wage-workers for jobs, wages are reduced (when prices fall) to just about the cost of living. In discussing Low Prices we have learned what would happen to B, (wages) as a result.
We are still speaking of commodities which exchange at their values.
If A (Or the value of the necessities of life) is doubled, the value of your labor-power will also be doubled, Suppose A is doubled without B being increased accordingly–the value of food, clothing and shelter be twice what it was formerly and wages remain stationary. Reformers will tell you that the grocer, the butcher, clothier and landlord are exploiting you.
They say that your employer exploits you, but that when you go to spend your wages these other men also cheat or rob you.
But if wages (B) do not rise to the same level as the necessities of life (A) this merely means that your boss is no longer paying you the value of your labor-power. The value of food, clothing and shelter determine the value of your labor-power.
Do not be confused into thinking because rents are "high," or because food is expensive that you are exploited when you pay' for these things. As A increases in value your labor-power increases in value. And only when wages equal the cost of living are you receiving the value of your labor-power.
Shortage of workingmen may cause labor-power to exchange above its value temporarily; shortage or an over supply of any commodity may cause it to exchange above or below its value for a short time. But monopoly alone can cause a commodity to exchange above its value for any length of time. To repeat:
Reformer says: The wage worker receives his wages. That he is exploited by his employer. But when he goes to buy shoes, food, meat or clothes, he finds the owner of these commodities selling them at a higher price than he can pay. Then the reformers conclude that these merchants are exploiting the workers also. These people do not understand that the value of A (the necessities of life) determine wages.
Not all individual workingmen or women receive the value of their labor-power. Some men and women receive a little more than 