Summary of Principles illustrated in this volume.
The produce of labour and capital, after rent has been paid, is divided between the labourer and the capitalist, under the names of Wages and Profits.
Where there are two shares, each determines the other, provided they press equally upon one another.
The increase of the supply of labour, claiming reward, makes the pressure in the present case unequal, and renders wages the regulator of profits.
The restriction of the supply of food causes the fall of both profits and wages.
The increased expense of raising food enhances its price: labour, both agricultural and manufacturing, becomes dearer, (without advantage to the labourer:) this rise of wages causes profits to fall; and this fall brings after it a reduction of the labourer’s share, or a fall of wages.
The fall of profits and wages is thus referrible to the same cause which raises rent;—to an inequality in the fertility of soils.
It is supposed by some that these tendencies to the fall of wages and profits may be counteracted by abolishing the distinctions of shares, and casting the whole produce of land, capital, and labour, into a common stock. But this is a fallacy.