The rate of wages in any country depends, therefore, not on the wealth which that country contains, but on the proportion between its capital and its population.
As population has a tendency to increase faster than capital, wages can be prevented from falling to the lowest point only by adjusting the proportion of population to capital.
The lowest point to which wages can be permanently reduced is that which affords a bare subsistence to the labourer.
The highest point to which wages can be permanently raised is that which leaves to the capitalist just profit enough to make it worth his while to invest his capital.
The variations of the rate of wages between these extreme points depending mainly on the supply of labour offered to the capitalist, the rate of wages is mainly determined by the sellers, not the buyers of labour.
Combinations of labourers against capitalists (whatever other effects they may have) cannot secure a permanent rise of wages unless the supply of labour falls short of the demand;—in which case, strikes are usually unnecessary.
Nothing can permanently affect the rate of wages which does not affect the proportion of population to capital.
Legislative interference does not affect this proportion, and is therefore useless.
Strikes affect it only by wasting capital, and are therefore worse than useless.
Combinations may avail or not, according to the reasonableness of their objects.