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:
“It was then that the iron entered my soul.”
—Margaret Thatcher (b. 1925)
“When shot, the deer seldom drops immediately, but runs sometimes for hours, the hunter in hot pursuit. This phase, known as ‘deer running,’ develops fleet runners, particularly in deer- jacking expeditions when the law is pursuing the hunters as swiftly as the hunters are pursuing the deer.”
—For the State of Maine, U.S. public relief program (1935-1943)
“If the wages of sin are death, what else, I should like to know, is the wages of virtue?”
—Samuel Butler (1835–1902)