than in England, where wheaten flour and shoes and stockings are expected. Any general lowering of the standard of living is therefore to be deprecated—as the wide substitution of cheap vegetable food-stuffs for more expensive articles of diet. The standard of living also (and chiefly, in any given country) affects wages through its effect on population. Mill points out ("Principles of Political Economy," Book II., chap. xi., sec. 2) that "wages do adapt themselves to the price of food", either (a) from children dying prematurely when food rises, and wages were before barely sufficient to maintain them, or (b) from voluntary restriction of the growth of population when the laborers refuse to sink below a certain standard of living. In each case the diminution of labor supply causes a rise of wage. "Mr. Ricardo", says Mill, "considers these two cases to comprehend all cases. He assumes, that there is everywhere a minimum rate of wages: either the lowest with which it is physically possible to keep up the population, or the lowest with which the people will choose to do so. To this minimum he assumes that the general rate of wages always tends; that they can never be lower, beyond the length of time required for a diminished rate of increase to make itself felt, and can never long continue higher." This is the "iron law of wages", and it is the recognition of its truth which, among other reasons, sets Socialists against the wage-system of industry. [It must not be forgotten that the phrase "ordinary operative" does not include all the workers. There is a large class which obtains barely subsistence wage, and those who are not regularly employed are on the very verge of starvation. The hard lot of these must not be left out of sight in impeaching the present social state.]
The capitalist, then, buys as much labor-force as he desires, or as his means allow, at the market price, determined in the way we have seen. This labor-force he proposes to utilise for his own advantage; with some of his capital he buys it; some of his capital consists in machinery, and the labor-force set at work on this machinery is to produce wealth. The labor-force and the instruments of production are now brought together; they will now produce wealth, and both they and the wealth they produce are the property of the capitalist.
