ABSTRACT
Labor is productive and is classified among productive agencies. Production we have found to be the creation of desirabilities and utilities. The total demand for labor, in a broad sense, consists of the available resources which would lie idle apart from human aid. Men hire labor for what it produces, as they borrow money for what it buys; the motive of the employer is in the product of the labor. The demand for labor is co-extensive with the demand for goods and services. When the market demand for goods is elastic, so also is the market demand for labor. The lump-of-labor theory is based upon the assumption that there is a given amount of work to be done; if one group of laborers does this work other groups are unemployed, and if machinery does the work labor goes idle. The usual effect of cheapening the products of one industry is to create a demand for the products of another industry.
