TAILIEUCHUNG - History of Economic Analysis part 31

History of Economic Analysis part 31. At the time of his death in 1950, Joseph Schumpeter-one of the major figures in economics during the first half of the 20th century-was working on his monumental History of Economic Analysis. A complete history of humankind's theoretical efforts to understand economic phenomena from ancient Greece to the present, this book is an important contribution to the history of ideas as well as to economics. | History of economic analysis 262 The discussion on the related problem of child labor was still less productive of analytic performance. Children had always worked with their parents on the farm and under the system of domestic industry in the home. The spread of factories merely created new opportunities for the employment of children at a very early age in the tending of simple machines and induced a new practice of binding out the children of paupers to cotton manufacturers in order to reduce the poor rate. Those writers who were impressed by the incidental horrors or by the obvious consequences for the health of the race were few indeed The large majority accepted child labor not only as a matter of course but with approval as a sound discipline and as a solution of many of the worker s problems. Some seventeenth-century writers hailed it as a boon to the masses and seem to have considered the children s earnings as a net addition to the family income of workers without taking account of the effects that the competition of the children must produce on the wages of adults. This theory which was held by Yarranton 8 qualifies well as an example of ideological distortion of vision. But it also qualifies as an example of early economic reasoning that in spite of its crudity contained an element of truth. If we choose to disregard everything except money income then it is likely that in the conditions of that time child labor did result in a gain to the working class though this gain was certainly less than the amount of the children s earnings and did promote Yarranton s ideal of cheapness and plenty. This attitude changed but slowly in the eighteenth century and humanitarian feelings had more to do with it than had economic analysis. Many instances could be adduced of writers who mention full employment of children at as early an age as possible at six or even four years with unqualified satisfaction or who at least accepted it unquestioningly as the normal state .

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