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The iron law of wages influences
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The iron law of wages influences Ricardian land rent theory
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Ricardo understood that the Corn Laws would produce unequal distribution of wealth. He saw that if protections of domestic grain markets were removed, labor would be redeployed to other areas of the economy. Real wages in the agricultural sector would increase and the workers share of wealth would increase as a result. The nation would also benefit as the price of corn and grain would decrease due to foreign trade. Redeployed workers would be able to help other areas of the economy grow, in particular those free from tariff burdens, again achieving a greater distribution of wealth than occurred under the Corn Laws
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