Meaning: This quote addresses the potential consequences of enforcing a coercive tribunal's decree on wages, particularly in relation to the natural system of distribution and the productivity of social labor. The speaker, John Clark, presents the argument that a coercive tribunal's intervention in determining wages could lead to the introduction of an arbitrary element into the distribution of income, ultimately resulting in a perversion of the natural system.

The reference to the "true standard of wages" points to the idea that wages should ideally be determined by the final productivity of social labor. In a free-market economy, the wages of workers are often influenced by the productivity of their labor, with more productive workers typically earning higher wages. This system is based on the principle of meritocracy, where individuals are rewarded based on the value they contribute to the economy through their work.

However, the quote suggests that if a coercive tribunal were to impose its decree on wages, it may not necessarily consider the actual productivity of labor as the primary factor in determining wages. This could lead to a departure from the natural system of distribution based on merit and productivity, and instead introduce an arbitrary element into the process.

The term "coercive tribunal" implies a governing body or authority that has the power to enforce its decisions through coercion or force. In the context of labor and wages, this could refer to a government agency, a regulatory body, or any institution with the authority to set or regulate wage levels. The quote raises concerns about the potential consequences of such a tribunal's intervention in the determination of wages.

The use of the word "arbitrary" in the quote is significant, as it suggests that the decisions made by the coercive tribunal may lack a clear and justifiable basis. Instead of being tied to the actual productivity of labor, the decree of the tribunal could be influenced by factors unrelated to merit or contribution, leading to an unfair or unjust distribution of income.

Furthermore, the quote highlights the "very large ultimate power" that a coercive tribunal could wield in perverting the natural system of distribution. This emphasizes the significant impact that such interventions could have on the overall economy and the livelihoods of individuals. The potential for distortion and manipulation of the natural system of wages and distribution is a central concern raised by the quote.

In the context of economic theory and policy, the quote from John Clark underscores the importance of allowing market forces to play a significant role in determining wages. It reflects a perspective that emphasizes the principles of merit-based compensation and the relationship between productivity and income. The concern raised about the potential for a coercive tribunal to disrupt this natural system serves as a cautionary note regarding the potential consequences of excessive intervention in labor markets.

In conclusion, the quote by John Clark highlights the potential risks associated with the imposition of a coercive tribunal's decree on wages. It raises concerns about the introduction of arbitrary elements into the distribution of income and the potential distortion of the natural system of wages based on productivity. This perspective underscores the importance of considering the implications of policy interventions in labor markets and the potential consequences for the overall economy and social welfare.