Labor Day is a celebration of labor and the rights of workers. The Department of Labor offers some information on the 'History of Labor Day'. Yet it is more than a day off of work. It is an acknowledgement that labor is an important factor to national development. For far too long we invested in cheaper labor overseas in foreign markets versus enhancing our own human capital at home
(Its not about investing or not investing overseas as we are in a global interconnected world and some investments for materials, emerging technologies, international partnerships, supply chain, etc. are a must and cannot be avoided. Being strategic to ensure it enhances our national position means we get the most out of our efforts.)
We cannot neglect American labor in our American Digital Era Oriented Renaissance and should find ways to enhance it. A few economic snap shots from classical economic theory as it relates to labor.
"The real price of everything, what everything really costs to the man who wants to acquire it, is the toil and trouble of acquiring it. (Smith 1776, ch. 5, §2; )"
Principle: Product value is based in effort of obtainment (i.e. scarcity). By extension we might further make the connection to increased productivity, i.e. technology/innovation, can lead to cheaper, high demand products.
"The value of a commodity [. . .] depends on the relative quantity of labour which is necessary for its production, and not on the greater or less compensation which is paid for that labour. (Ricardo 1817, ch. 1, §1;)"
Principle: We can enhance labor to build better products and that paying workers more for learning and applying new skills and abilities may help in fostering human capital. If their creative and productive value rises so should their wages. (One of the potential advantages to a cluster is that it not only raises skill through advanced innovation but also wages from industry labor enhancements.)
A man grows rich by employing a multitude of manufacturers: he grows poor by maintaining a multitude of menial servants. (Smith 1776, book II, ch. III;)
Principle: The innovative complexity of a product (i.e. its uniqueness) can created unique real value (Based on my transactional innovative cluster theory, one might say a unique cluster and its innovative product outputs, i.e. unique ships or outdoor gear will likely have higher value that countries can't easily copy. That could lead to market leading products and/or multiple leading industries in a nation.)
Smith, A. 1776. An Inquiry into the Nature and Causes of the Wealth of Nations. https://oll.libertyfund.org/title/smith-an-inquiry-into-the-nature-and-causes-of-the-wealth-of-nations-cannan-ed-vol-1
Ricardo, D. 1817. The Principles of Political Economy and Taxation https://www.econlib.org/library/Ricardo/ricP.html
"The real price of everything, what everything really costs to the man who wants to acquire it, is the toil and trouble of acquiring it. (Smith 1776, ch. 5, §2; )"
Principle: Product value is based in effort of obtainment (i.e. scarcity). By extension we might further make the connection to increased productivity, i.e. technology/innovation, can lead to cheaper, high demand products.
"The value of a commodity [. . .] depends on the relative quantity of labour which is necessary for its production, and not on the greater or less compensation which is paid for that labour. (Ricardo 1817, ch. 1, §1;)"
Principle: We can enhance labor to build better products and that paying workers more for learning and applying new skills and abilities may help in fostering human capital. If their creative and productive value rises so should their wages. (One of the potential advantages to a cluster is that it not only raises skill through advanced innovation but also wages from industry labor enhancements.)
A man grows rich by employing a multitude of manufacturers: he grows poor by maintaining a multitude of menial servants. (Smith 1776, book II, ch. III;)
Principle: The innovative complexity of a product (i.e. its uniqueness) can created unique real value (Based on my transactional innovative cluster theory, one might say a unique cluster and its innovative product outputs, i.e. unique ships or outdoor gear will likely have higher value that countries can't easily copy. That could lead to market leading products and/or multiple leading industries in a nation.)
Smith, A. 1776. An Inquiry into the Nature and Causes of the Wealth of Nations. https://oll.libertyfund.org/title/smith-an-inquiry-into-the-nature-and-causes-of-the-wealth-of-nations-cannan-ed-vol-1
Ricardo, D. 1817. The Principles of Political Economy and Taxation https://www.econlib.org/library/Ricardo/ricP.html
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