What does the Iron Law of Wages suggest about wage levels?

The Iron Law of Wages posits that, over time, wages for the working class will tend to stabilize around a subsistence level, which is the minimum income necessary for workers to meet their basic needs for survival, such as food, shelter, and clothing. This theory highlights a critical dynamic in labor economics, indicating that as wages rise above this subsistence level, they typically lead to higher population growth. Increased population may result in an oversupply of labor, which in turn drives wages back down to the subsistence level.

In this context, the Iron Law of Wages reflects the interplay of supply and demand in the labor market, where the workers' ability to negotiate higher wages is limited by the availability of labor. This means that long-term wage trends are often constrained to remain at, or close to, what is necessary for workers to sustain themselves and their families.