Note 59 — Chapter II

‘Wages depend, then, on the proportion between the number of the labouring population, and the capital or other funds devoted to the purchase of labour; we will say, for shortness, the capital. If wages are higher at one time or place than at another, if the subsistence and comfort of the class of hired labourers are more ample, it is, and can be, for no other reason than because capital bears a greater proportion to population. It is not the absolute amount of accumulation or of production that is of importance to the labouring class; it is not the amount even of the funds destined for distribution among the labourers; it is the proportion between those funds and the numbers among whom they are shared. The condition of the class can be bettered in no other way than by altering that proportion to their advantage; and every scheme for their benefit which does not proceed on this as its foundation, is, for all permanent purposes, a delusion.’ Mill's Principles of Political Economy, 1849, vol. i. p. 425. See also vol. ii. pp. 264, 265, and M'Culloch's Political Economy, pp. 379, 380. Ricardo, in his Essay on the Influence of a Low Price of Corn, has stated, with his usual terseness, the three possible forms of this question: ‘The rise or fall of wages is common to all states of society, whether it be the stationary, the advancing, or the retrograde state. In the stationary state, it is regulated wholly by the increase or falling-off of the population. In the advancing state, it depends on whether the capital or the population advance at the more rapid course. In the retrograde state, it depends on whether population or capital decrease with the greater rapidity.’ Ricardo's Works, p. 379.