The Iron Law of Wages is a proposed law of economics that asserts that real wages always tend, in the long run, toward the minimum wage necessary to sustain the life of the worker. The theory was first named by Ferdinand Lassalle in the mid-nineteenth century. Karl Marx and Friedrich Engels attribute the doctrine to Lassalle (notably in Critique of the Gotha Programme (1875), Marx), crediting the idea to Thomas Malthus in his work, An Essay on the Principle of Population, and the terminology to Goethe's "great, eternal iron laws" in Das Göttliche.
Famous quotes containing the words iron, law and/or wages:
“Along the iron veins that traverse the frame of our country, beat and flow the fiery pulses of its exertion, hotter and faster every hour. All vitality is concentrated through those throbbing arteries into the central cities; the country is passed over like a green sea by narrow bridges, and we are thrown back in continually closer crowds on the city gates.”
—John Ruskin (1819–1900)
“It grieves me to think how far more profound and reverent a respect the law would have for literature if a body could only get drunk on it.”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)
“If the wages of sin are death, what else, I should like to know, is the wages of virtue?”
—Samuel Butler (1835–1902)