The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1890-06-08
The IRON LAW OF WAGES
The Price OF q Days Labor Gov
erned by q Standard Of Com
fort and Oecenoy-Tho Law
Of Supply and Demand.

OF the term, 1.-THE IN OF wages" writes
Dyer d. Lum In the Carpenter. They
keenly realize that there ID some subtle
power, some impalpable restriction which
acts as IL with iron hand to repress their
share in the distribution Of wealth. Adam
Smith said that labor created all wealth,
but he also says that wag are deter
mined by the standard of comfort and de-
cency, below which II would be indecent
for ever those of the lowest order to sink.
David Ricardo, who early In this century
reduced political economy to q and
logical precision, defined the law Of wages
to be at what is called ''the subsistence
line" This, Nautilus pithily described rs
flood, clothing. lodging. firing" and how
near 10 the actual cost OF subsistence this
often approaches we have personal rea-
sons for knowing.
Lassalle and the German socialists, &c.
cepting the statements of Ricardo and
Nautilus, have defined this standard OF
wages as an ''iron law" under our pres
ent system of production and distribution.
II Ricardo was right, then the objections
brought by Lassalle were justifiable, and
as long as our economic system remains
as 1t is, any and all attempts TO evade the
''iron law" must be useless effort, and the
must be directed toward wrestling from
capital its control owe production. Nay,
more; IL there he such inexorable iron
law, every effort OF unionism to mitigate
present evils and to raise wages must be
a vain delusion. II will not be necessary
that he is not q defender of our economic
system, but having faith In unionism, he
is not prepared to base his whole philos-
ophy upon Ricardo's sophism. Let us,
therefore, examine IL.
In the first place, the theory that the
-. .--p - ---.J Al
price Of commodities can only be true
where these freely act and are left unim-
peded TO How to q natural level. But this
is not the case. In every instance where
monopoly enters, supply and demand are
denied free course. This interference
sense as cause and effect are as related
to the same phenomenon. There Is no
way by which commodities can be seper-
ated to distinguish those under the con-
troll of monopoly. Again, Whatever econo
mists may say monopoly does enter even
operation. Monopoly over land and over
exchange restrict labor In its alliance
with capital before production begins.
But is II, indeed. true that wages are not
only the residual dividend after rent. in
terest. profits and taxation have first
taken their share? Has the subsistence
line beer inherited from slavery? The
many disadvantages the laborer suffers
under is i'm no way disputed; even the
economists often see and admit them.
Thus Francis A. Walker Says:
; far as differences exist I'm respect
several classes of industrial society to
resort swiftly and surely to the best mar
kets, such differences must put at an
economical disadvantage the class suffer-
ing the greatest relative obstruction, and
eonfers corresponding advantages at
classes more favorably situated or
better endowed. Such disadvantages, be
they great or small, at the outset are cum
~ulative; that the word To him that hath
shall be given, and from him that hath
not shall be taken, even the little that he
seemeth TO have is a law of universal
operation and a very unharmonizing ten
dency; that economical forces thus, in
stead Of bringing redress. tend to crowd
further down the classes who enter the
struggle weakest"
All this, as I have said, is admitted. I
shall enter into no argument to show that
'the iron law" was based, first, on the ex-
ploded wage fund theory, In which the
proportion to be distributed i'm wag be-
came but n question in divisions; nor,
second, the proof OF the present theory
that wages are paid out OF the product of
industry. Our textbooks are sufficient
for this.
The prime cause of the pressure upon
labor which has given rise to the iron law
chat is m-ononoly. whether nv ;ndiv;d.
nal continuation of The canitaIists or nv
ieg;sIation matters not here We know,
that there Is no more comnetition he.
tween the wealthy contractor and EN-
bbnys his f,,ei for the wear by the cargo and
the other who is forced 10 get his by the
measure. This INEQUALITY Of conditions
, ~ o-nnortunities is the result az comhinn'
tion onerative over the conditions OF nro.
So no sneak. with n chain and hall npon
his limbs. Even N his c~ombination he n
aovernmentai one. Inv which the iandlord
syacts from labor rent. and the hoIders of
,noncv large toll of interest. the fact IL ms
stated.
Rut The situation is not SO desperate a,
a.. ;'n.a;no who m;.tooL n,,asent con,