Tag Archives: Iron Law of Wages

David Ricardo. EconospeakNo Other Way of Keeping Profits Up Sandwichman See also Michael KaleckiPolitical Aspects of Full Employment Political Quarterly, 1943  also Iron Law of Wages Wikipedia

This is an interesting point about Marx’s economic theory: he rejected the orthodox Classical “iron law of wages.” Nevertheless, there are still severe problems with Marx’s theory of wages.In essence, the Classical “iron law of wages” was derived from (1) the wage fund theory in Classical economics and (2) Malthusian population theory. The “iron law of wages” was, then, in view of (2) a kind of “law of nature.”By contrast, Marx rejected Malthusian population theory (Baumol 1983: 304, 305),...