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:
“And thus we rust Life’s iron chain
Degraded and alone:
And some men curse, and some men weep,
And some men make no moan:
But God’s eternal Laws are kind
And break the heart of stone:”
—Oscar Wilde (1854–1900)
“In our day the conventional element in literature is elaborately disguised by a law of copyright pretending that every work of art is an invention distinctive enough to be patented.”
—Northrop Frye (b. 1912)
“Three factors—the belief that child care is female work, the failure of ex-husbands to support their children, and higher male wages at work—have taken the economic rug from under that half of married women who divorce.”
—Arlie Hochschild (20th century)