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Updated: June 6, 2025
Therefore, I put first among the constructive things which may be done by the exercise of the Government's power of supervision and direction, with the smallest outlay of money, this matter of providing suburban homes for our millions of wage earners.
Under the reign of competitive business and society, the market is largely composed of small wage earners, whose necessities are so great, whose tenure of employment is so uncertain, and whose wages are so scanty; that they are forced to buy the cheapest of everything.
Under this head I put, first, the matter of suburban homes for wage earners; second, reclamation of desert, overflow, and cut-over areas, together with improvement of abandoned farms, under a system of district organization which may be made to finance itself; third, cooperation with various States in the work of internal development.
Other facts challenge that theory more seriously. They really do point to the existence of relatively separate groups of wage earners, each with an economic career somewhat independently determined.
Differences in the levels of earnings of various groups of wage earners have been called "differentials." An effort has been made to explain their causes. Several practical conclusions, in regard to them, may be deduced from the preceding discussion.
Indeed, the existence of organized joint boards or councils of wage earners and employers would be almost essential to the success of any policy. The central constituted agency for the administration of the policy should be a commission or court.
Furthermore, industrial conditions are constantly changing and creating new lines of group separation or unity, which may vary from the lines of the existing labor unions. Labor organization affects the formation of relatively separate groups of wage earners both directly and indirectly. First as to its direct influence.
That I believe to be true, although it is probable that the wage earners in New York City are better governed, have more freedom, and enjoy a healthier and more stimulating environment than the wage earners in the smaller industrial towns of Massachusetts or Pennsylvania, for example.
If labor organization has been able to increase the wages of certain groups of wage earners without doing equivalent harm in any other direction, there is reason for believing that a living wage policy can accomplish something of the same result for the lowest grades of industrial labor, which have been up to the present practically without organization.
The necessity of avoiding political interference, if possible. We have now completed that part of this inquiry which was concerned with the formulation of principles suitable for the regulation of the wages of the lowest paid industrial groups. The task remains of working out principles which could be used satisfactorily in the settlement of wages for all other groups of wage earners.
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