March 27, 2007
Class warfare c. 1907

From the March 27, 1907 NYT:

Laborers employed at Golf House, John D. Rockefeller's country estate here, have had their wages increased 15 cents a day. They now receive $1.65 for ten hours' work instead of $1.50.

Mr. Rockefeller is having difficulty in obtaining laborers to carry on the extensive improvements he has planned...His Superintendent, William Forrester, has scoured the country-side about Lakewood [New Jersey] for laborers during the last month, but he has not been able to get enough men.

The usual wage paid to laborers by George J. Gould and other wealthy cottagers of Lakewood has been $1.50 a day. Now that Mr. Rockefeller has given his employees an increase of 10 per cent, it is expected that other employers will be compelled to do likewise.

Thank goodness the government wasn't involved with the wage increase or it might have only kept up with inflation, 2.47% in 1906 and 4.7% in 1907.

From eh.net, $1.50 and $1.65 in 1907 would be $32.16 and $35.37, respectively, in 2005 dollars. Not too shabby for planting trees on a big-wig's estate.

[Update (3/28/2007, 10:34 CDT): Colleague Mike Ward points out that I implicitly acted as if laborers on Rockefeller's estate were paid $32.16 per hour, which of course is not true. The workers were paid approximately $3.21 per hour in 2005 dollars, slightly more than half of today's minimum wage. However, the folks at EH.net put the per-capita income at $391 per year in 1907 ($5649 in 2005 dollars). Assuming a 300 day work year, this would put daily wages in the area of $1.30 in 1907 dollars or $18.83 in 2005 dollars. I would maintain that landscaping and trail-blazing are relatively low-skill chores, so the fact that Rockefeller paid his workers well above the national average seems consistent with my previous comments.

Thanks to Mike for his persistent vigilance over my words.]

Posted by Craig Depken at 12:16 PM in Economics

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

Our Bloggers
Joshua Hall
Robert Lawson
E. Frank Stephenson
Michael C. Munger
Lawrence H. White
Craig Depken
Tim Shaughnessy
Edward J. Lopez
Brad Smith
Mike DeBow
Wilson Mixon
Art Carden

Blogroll

Search

Archives
By Author:
Joshua Hall
Robert Lawson
E. Frank Stephenson
Michael C. Munger
Lawrence H. White
Edward Bierhanzl
Craig Depken
Ralph R. Frasca
Tim Shaughnessy
Edward J. Lopez
Brad Smith
Mike DeBow
Wilson Mixon
Art Carden

By Month:
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004
September 2004
August 2004
July 2004

Powered by
Movable Type 2.661

Site design by
Sekimori

XML