on some Doctrines of Political Economy. 229 



Note on Art. 2. 



Let a tax be imposed on wages which is a fraction k of the whole. 

 Let tlic labourer's consumption of manufactured goods be a fraction ni of 

 his whole consumption ; and let the portion of the value of goods which 

 depends on wages be a fraction n of the whole. Let x be the fraction by 

 which wages rise in consequence of the tax. Now goods before the tax 

 consist in value of m wages, and 1 — m h'aw produce. When wages arc 

 increased in the ratio l+j; : 1, the value of goods will therefore be in- 

 creasied in the ratio {\ + x)m + \ — m : 1, or \'-\- mx : 1. ALso before 

 the ta.x the labourer's consumption is n in goods and \—n in produce. And 

 if it continue the same in each article, (which is supposed) its parts will be 

 M (1 + mx) and 1 — «: and these, together with the tax, which is h (l+.r) 

 make up the whole new wages. Therefore 



II (1 + mx) + 1 — « + ^' (1 + .r) = 1 + a; ; 



.-. k = x — /,\v — m?/x, X = ~ ; , 



\ — k — mn 



and the effect on the price of goods = mx = , j . 



' ° \ - k — mn 



1 2.1 



by a tax on wages of — , wages rise — , and prices — . 



The result given in Art. 2, is inaccurate on the supposition of a tax 

 of one tenth on wages ; for the fimt step of the effect of such a tax 

 would be to increase wages by one ninth, in order that when one tenth 

 of the increased wages was deducted, the part remaining to the labourer, 

 might be the same as before. 



It is to be noticed, that the reasoning of the preceding pages differs 

 from that of Mr. Thompson's Theory of Rent, only in the introduction 

 of matliematical processes. 



CORRECTIONS. 



Page 192, Vme 5 for or reiitl and. 



18 I have accidentally mi.sstated Mr. Ricardo's object in the argument 



which I have quoted. The purpose which he has in view wiien he adduces it, is to shew 

 that taxes on wages must fall on profits. This mistake however does not affect the use of 

 tlie argument for illustrating the observation which I have founded upon it. 



I'age IfTS, line23./("' limits read, limit. 



