It's almost certainly a relative of the widget.
It occurs to me that widget has come to mean a whatsit. It was, however, a wood working tool back in the day. Roy Underhill showed one, and how it worked back around 1980 on The Woodwright Shop. I can't even find a reference to that old tool online. The stock looks like the stock for a threader (see attached pic), with its two handles, and the working business in between.
Instead of holding a die, however, it had a blade set like our current whatsit. It worked like an endless pencil sharpener, as Underhill remarked, turning out round stock.
The blade in the stock was set so that what you wanted to make round was held in a vise, and you grasped the handles and turned them clockwise.
The tool we are looking at might be used that way, but I was looking at it as though the tool was held and the material was turned.
So, it appears to me to be a relative of the old tool properly named a widget.