Here is what i posted:
Ricardo, Principles, Works, vol. 1
395: "Machinery and labour are in constant competition, and the former
can frequently not be employed until labour rises."
395: "In America and many other countries, where the food of man is
easily provided, there is not surely such great temptation to employ
machinery as in England, where food is high, and costs much
labour for its production. The same cause that raises labour,
does not raise the value of machines, and, therefore with every
augmentation of capital, a greater proportion is employed on
machinery." But of course, labor was still more expensive
in the U.S. despite cheap food.
Gil Skillman wrote:
>
> PEN'rs: A long time ago someone on the list, maybe Michael Perelman, cited
> a passage in Ricardo's _Principles of Political Economy and Taxation_ which
> seemed to anticipate modern "efficiency wage" theory, to the effect that
> higher wages can induce higher levels of worker effort or quality. If that
> citation exists, could anyone direct me to it? Michael? Thanks in advance,
> Gil Skillman
--
Michael Perelman
Economics Department
California State University
Chico, CA 95929
Tel. 916-898-5321
E-Mail [EMAIL PROTECTED]
