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David Ricardo and His IRON Law of Wages

David Ricardo (1772-1823) was one of England's most pristine economic theorists of the early nineteenth century. His ideas about wage control for the average worker were used and abused by the industrial capitalists of Britain, known as cotton lords, who wanted to produce as much profit as possible at the least possible cost. He shared views with Adam Smith (whose book The Wealth of Nations founded the capitalist doctrine of laissez-faire) and Thomas Malthus who expected Britain to practice a form of birth control.   Together, these three and others make up something known as the "Manchester School" which preached classic economics.  Ricardo's theory, which eventually became known as the 'Iron Law of Wages, maintained that  high wages were pointless because they encouraged the workers to have more children thus cancelling the purpose of high wages.  He believed the wages of labourers should be kept at the lowest possible level because their high rate of reproduction ensured a surplus supply of labour.   His theories made the industrialists of Britain extremely happy because they were therefore able to use the Ricardian theory of wage control to refute the calls of the reformers.

 (David Ricardo)