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The iron law of wages is the argument that wages "naturally" tend towards a minimum level corresponding to the subsistence needs of the workers.
The title of a pamphlet published in 1817 by the classical economist David Ricardo, it was later adopted by Karl Marx and influenced his early pessimistic views about the possibility of workers benefiting from capitalism.
The Austrian School replied that value was dependent on the value that labor brought to the entrepreneur rather than any endless supply of labor.
External link
David Ricardo: The Iron Law of Wages (http://www.fordham.edu/halsall/mod/ricardo-wages.html)
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