• Economics

    Malthus and Ricardo, Wages and Rent

    https://en.wikipedia.org/wiki/Iron_law_of_wages https://en.wikipedia.org/wiki/Law_of_rent https://en.wikipedia.org/wiki/An_Essay_on_the_Principle_of_Population http://blogs.worldbank.org/health/female-education-and-childbearing-closer-look-data   Ferdinand Lassalle’s Iron Law of Wages, following from Malthus, and David Ricardo’s Law of Rent are some of the very first relatively quantitative attempts at statements or observations of economics and can IMHO be considered a sort of ancestor of modern economics.  In the Iron Law of Wages, as population increases, the labor supply increases and thus the wage price decreases – which does mean that we assume labor demand is unaffected by population and thus labor demand is effectively exogenous.  Wages continue to decrease until they hit subsistence levels for laborers.  A further decrease in wages is unsustainable as laborers will literally be unable…