On The Principles of Political Economy, and Taxation — John Shaqi
On The Principles of Political Economy, and TaxationRicardo, David
General
On The Principles of Political Economy, and Taxation
Ricardo, David
Economics
In the first case, the natural price of wages, which always depends on
the price of food, clothing, and other necessaries, will rise; in the
second, it will remain stationary, or fall; but in both cases the market
rate of wages will rise, for in proportion to the increase of capital
will be the increase in the demand for labour; in proportion to the work
to be done will be the demand for those who are to do it.
In both cases too the market price of labour will rise above its natural
price; and in both cases it will have a tendency to conform to its
natural price, but in the first case this agreement will be most
speedily effected. The situation of the labourer will be improved, but
not much improved; for the increased price of food and necessaries will
absorb a large portion of his increased wages; consequently a small
supply of labour, or a trifling increase in the population, will soon
reduce the market price to the then increased natural price of labour.
In the second case, the condition of the labourer will be very greatly
improved; he will receive increased money wages, without having to pay
any increased price, and perhaps, even a diminished price for the
commodities which he and his family consume; and it will not be till
after a great addition has been made to the population, that the market
price of wages will again sink to their then low and reduced natural
price.
Thus, then, with every improvement of society, with every increase in
its capital, the market wages of labour will rise; but the permanence of
their rise will depend on the question, whether the natural price of
wages has also risen; and this again will depend on the rise in the
natural price of those necessaries, on which the wages of labour are
expended.
It is not to be understood that the natural price of wages, estimated
even in food and necessaries, is absolutely fixed and constant. It
varies at different times in the same country, and very materially
differs in different countries. It essentially depends on the habits and
customs of the people. An English labourer would consider his wages
under their natural rate, and too scanty to support a family, if they
enabled him to purchase no other food than potatoes, and to live in no
better habitation than a mud cabin; yet these moderate demands of nature
are often deemed sufficient in countries where "man's life is cheap,"
and his wants easily satisfied. Many of the conveniences now enjoyed in
an English cottage, would have been thought luxuries at an early period
of our history.
From manufactured commodities always falling, and raw produce always
rising, with the progress of society, such a disproportion in their
relative value is at length created, that in rich countries a labourer,
by the sacrifice of a very small quantity only of his food, is able to
provide liberally for all his other wants.
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