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" "Owing to the incapacity of the higher price-rate to appeal to the "acquisitive sense," it would appear altogether plausible to attempt to do so by utilizing the opposite strategy: by decreasing piece-rates, to force workers to produce more in order to maintain their accustomed earnings. Moreover, two simple observations seem to have held true in the past, as they do today: a lower wage and higher profit are directly related, and all that is paid out in higher wages must imply a corresponding reduction of profits.
Capitalism has been guided by this axiom repeatedly, and even from its beginning, and it has been an article of faith for centuries that lower wages are "productive." In other words, lower wages were believed to enhance worker productivity.
Maximilian Carl Emil Weber (21 April 1864 – 14 June 1920) was a German sociologist, philosopher, jurist, and political economist whose ideas profoundly influenced social theory and social research. Weber is often cited, with Émile Durkheim and Karl Marx, as among the three founders of sociology.
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This striving becomes understood completely as an end in itself—to such an extent that it appears as fully outside the normal course of affairs and simply irrational, at least when viewed from the perspective of the "happiness" or "utility" of the single individual. Here, people are oriented to acquisition as the purpose of life; acquisition is no longer viewed as a means to the end of satisfying the substantive needs of life. Those people in possession of spontaneous, fun-loving dispositions experience this situation as an absolutely meaningless reversal of a "natural" condition (as we would say today). Yet this reversal constitutes just as surely a guiding principle of [modern] capitalism as incomprehension of this new situation characterizes all who remain untouched by [modern] capitalism's tentacles.
Since Judaism made Christianity possible and gave it the character of a religion essentially free from magic, it rendered an important service from the point of view of economic history. For the dominance of magic outside the sphere in which Christianity has prevailed in one of the most serious obstructions to the rationalization of economic life. Magic involves a stereotyping of technology and economic relations. When attempts were made in China to inaugurate the building of railroads and factories a conflict with geomancy ensued … Similar is the relation to capitalism of the castes in India. Every new technical process which an Indian employs signifies for him first of all that he leaves his caste and falls into another, necessarily lower … An additional fact is that every caste makes every other caste impure. In consequence, workmen who dare not accept a vessel filled with water from each other's hands, cannot be employed together in the same factory room. Obviously, capitalism could not develop in an economic group thus bound hand and foot by magical means.
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