Produce is the natural wages of labour.
Originally the whole belonged to the labourer.
If this had continued, all things would have become cheaper,
though in appearance many things might have become dearer.
This state was ended by the appropriation of land and accumulation of stock,
rent being the first deduction,
and profit the second, both in agriculture,
and other arts and manufactures.
The independent workman gets profits as well as wages,
but this case is infrequent.
Wages depend on contract between masters and workmen.
The masters have the advantage,
though less is heard of masters’ combinations than of workmen’s.
But masters cannot reduce wages below a certain rate,
namely, subsistence for a man and something over for a family
Wages may be considerably above this rate,
when there is an increasing demand for labourers,
which is caused by an increase of the funds destined for the payment of wages. The funds consist of
surplus revenue,
and surplus stock.
The demand for labourers therefore increases with the increase of national wealth.
High wages are occasioned by the increase, not by the actual greatness of national wealth.
North America is more thriving than England.
Wages are not high in a stationary country however rich.
China is not going backwards and labourers there keep up their numbers.
In a declining country this would not be the case.
In Great Britain wages are above the lowest rate,
since (1) there is a difference between winter and summer wages,
(2) wages do not fluctuate with the price of provisions,
(3) wages vary more from place to place than the price of provisions,
and (4) frequently wages and the price of provisions vary in opposite directions, as grain is cheaper and wages are higher in England than in Scotland;
and in last century grain was dearer and wages were lower than in this;
while other necessaries and conveniencies have also become cheaper.
High earnings of labour are an advantage to the society.
Poverty does not prevent births
but is unfavourable to the rearing of children,
and so restrains multiplication,
while the liberal reward of labour encourages it,
as the wear and tear of the free man must be paid for just like that of the slave, though not so extravagantly.
High wages increase population.
The progressive state is the best for the labouring poor
High wages encourage industry.
The opinion that cheap years encourage idleness is erroneous.
Wages are high in cheap years,
and low in dear years,
so that masters commend dear years.
Messance shows that in some French manufactures more is produced in cheap years.
No connexion is visible between dearness or cheapness of the years and the variations in Scotch linen and Yorkshire woollen manufactures
The produce depends on other circumstances, and more of it escapes being reckoned in cheap years
There is, however, a connexion between the price of labour and that of provisions.
In years of plenty there is a greater demand for labour,
and in years of scarcity a less demand,
and the effect of variations in the price of provisions is thus counterbalanced.
Increase of wages increases prices, but the cause of increased wages tends to diminish prices.