Page:The Economic Journal Volume 1.djvu/506

of poor countries Poland and Ireland. In the case of the Irish, he had remarked that, could they but be given a taste for comforts, they would certainly work harder. In the third edition these specific examples are left out; instead, he repeats his distinction between 'rich' and 'poor' countries; and, in spite of the phrase 'all countries,' the context would imply, just as in the first edition, that to stimulate the desire for comforts is the remedy peculiarly suitable to poor lands. If this is his meaning, the phrase 'exertions to procure them' in the later edition is intended to correspond with 'devote a further portion of his time to industry, that he might be enabled to obtain them' in the earlier. The one remedy, in brief, for poor countries, is greater industry. This is probably, on the whole, what Ricardo intended to say. Even if the phrase 'all countries' suggests a wider application, the impression from the whole argument, it may fairly be urged, is very different from that given by Professor Marshall's language about 'not allowing their wages to fall.'

Looking at Ricardo's chapter on wages as a whole, and his subsequent teaching as to the incidence of taxation, it does not seem difficult to get at his meaning. He recognises that there are differences in the 'standard of living' as between different nations and different ages. He thinks it desirable that this standard should be raised; but he believes that in 'rich' and 'long-settled' countries the only way to bring this about is 'a reduction of people.' And, although the standard of comfort in England was comparatively high, as compared, for instance, with that of Ireland, and included 'moderate comforts' and 'conveniences,' yet he constantly implies that these comforts are but little above the physical minimum.

Wages would fall if they were regulated only by the supply and demand of labourers; but we must not forget that wages are also regulated by the prices of the commodities o whick they are expended. As population increases, these essaries will be constantly rising in price... If then the money wages of labour should fall, whilst every commodity on which the wages of labour were expended rose, the labouter would be doubly affected, and would be so. totally deprived of subsistence.^[1]

This theory as to the relation of wages to subsistence was fruitful in consequences. It led directly to some of Ricardo's most important doctrines; —that, as the cost of food, and therefore wages, tended to increase, profits tended to diminish; and that

1. P. 54.