On The Principles of Political Economy, and TaxationRicardo, David
General
On The Principles of Political Economy, and Taxation
Ricardo, David
Economics
Give to the Irish labourer a taste for the comforts and enjoyments which
habit has made essential to the English labourer, and he would be then
content to devote a further portion of his time to industry, that he
might be enabled to obtain them. Not only would all the food now
produced be obtained, but a vast additional value in those other
commodities, to the production of which the now unemployed labour of the
country might be directed. In those countries, where the labouring
classes have the fewest wants, and are contented with the cheapest food,
the people are exposed to the greatest vicissitudes and miseries. They
have no place of refuge from calamity; they cannot seek safety in a
lower station; they are already so low, that they can fall no lower. On
any deficiency of the chief article of their subsistence, there are few
substitutes of which they can avail themselves, and dearth to them is
attended with almost all the evils of famine.
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. If, for
instance, wages were regulated by a yearly increase of capital, at the
rate of 2 per cent., they would fall when it accumulated only at the
rate of 1-1/2 per cent. They would fall still lower when it increased
only at the rate of 1, or 1/2 per cent., and would continue to do so
until the capital became stationary, when wages also would become
stationary, and be only sufficient to keep up the numbers of the actual
population. I say that, under these circumstances, wages would fall, if
they were regulated only by the supply and demand of labourers; but we
must not forget, that wages are also regulated by the prices of the
commodities on which they are expended.
As population increases, these necessaries will be constantly rising in
price, because more labour will be necessary to produce them. If, then,
the money wages of labour should fall, whilst every commodity on which
the wages of labour were expended rose, the labourer would be doubly
affected, and would be soon totally deprived of subsistence. Instead,
therefore, of the money wages of labour falling, they would rise; but
they would not rise sufficiently to enable the labourer to purchase as
many comforts and necessaries as he did before the rise in the price of
those commodities. If his annual wages were before 24_l._, or six
quarters of corn when the price was 4_l._ per quarter, he would probably
receive only the value of five quarters when corn rose to 5_l._ per
quarter. But five quarters would cost 25_l._; he would therefore receive
an addition in his money wages, though with that addition he would be
unable to furnish himself with the same quantity of corn and other
commodities, which he had before consumed in his family.
Public-domain text, read in full here on John Shaqi.
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