If industrial crises follow periods of overwork as inevitably …

If industrial crises follow periods of overwork as inevitably as night follows day, bringing after them lockouts and poverty without end, they also lead to inevitable bankruptcy. So long as the manufacturer has credit he gives free rein to the rage for work. He borrows, and borrows again, to furnish raw material to his laborers, and goes on producing without considering that the market is becoming satiated and that if his goods don’t happen to be sold, his notes will still come due. At his wits’ end, he implores the banker; he throws himself at his feet, offering his blood, his honor. “A little gold will do my business better”, answers the Rothschild. “You have 20,000 pairs of hose in your warehouse; they are worth 20c. I will take them at 4c.” The banker gets possession of the goods and sells them at 6c or 8c, and pockets certain frisky dollars which owe nothing to anybody: but the manufacturer has stepped back for a better leap. At last the crash comes and the warehouses disgorge. Then so much merchandise is thrown out of the window that you cannot imagine how it came in by the door. Hundreds of millions are required to figure the value of the goods that are destroyed.

Paul Lafargue: The Right To Be Lazy (1883)

(View on gamamb.tumblr.com)

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *