A history of economic doctrines : $b from the time of the physiocrats to the present dayGide, Charles
History
A history of economic doctrines : $b from the time of the physiocrats to the present day
Gide, Charles
Economics -- History
This is not tantamount to saying that nominal wages measured in terms
of money cannot increase. Indeed, it is absolutely necessary that they
should increase, seeing that the price of commodities is continually
rising. If they were to remain the same the workman would soon be reduced
to starvation. Wages accordingly will show a tendency to rise in sympathy
with the rising price of corn, so that the workman will always be able to
procure just the same quantity of bread, no more and no less. It is his
real wages measured in corn that remain stationary, and upon this depends
the well-being of the working class.
But do they really remain stationary? Ricardo does not seem to think
so. “In the natural advance of society the wages of labour will have a
tendency to fall, as far as they are regulated by supply and demand;
for the supply of labourers will continue to increase at the same rate,
whilst the demand for them will increase at a slower rate.”[346]
It is even possible that an increase in nominal wages may hide a decrease
in real wages. In that case, of course, wages will appear to rise, but
“the fate of the labourer will be less happy; he will receive more money
wages it is true, but his corn wages will be reduced.” Only when the
working classes are sufficiently thoughtful to limit the number of their
children will it be possible to hope for a preservation of the _status
quo_. “It is a truth which admits not a doubt, that the comforts and
well-being of the poor cannot be permanently secured without some regard
on their part or some effort on the part of the legislature to regulate
the increase of their numbers, and to render less frequent among them
early and improvident marriages.”
In other words, there will always be a demand for a certain number of
individuals in order to supply the needs of industry. So long as this
indispensable minimum is not exceeded the wages even of the very lowest
order must be sufficient to maintain existence, for they must all be kept
alive at any rate. But should the working population exceed this demand
nothing can prevent wages falling even below the minimum necessary for
existence, for there will no longer be any necessity for keeping them all
alive.
Public-domain text, read in full here on John Shaqi.
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