It was initially used in order to criticize the Poor Laws, on the grounds that they would increase the population of labor, which would ultimately lead to more workers, and would both make the workers poorer and rich bankrupt.
Along with the labor theory of value, this theory was refuted by Eugen Bohm-Bawerk in his monumental Theory of Capital, while Karl Marx criticized Lassalle's advocacy of the Gotha Programme on account of it. It was initially used in order to criticize the Poor Laws, on the grounds that they would increase the population of labor, which would ultimately lead to more workers, and would both make the workers poorer and rich bankrupt. Assuming that workers are infinitely available, replaceable and interchangeable, this idea built on the work of Malthus. FTP, identify this theory that states that salaries would always converge to subsistence levels, posited by David Ricardo.
Along with the labor theory of value, this theory was refuted by Eugen Bohm-Bawerk in his monumental Theory of Capital, while Karl Marx criticized Lassalle's advocacy of the Gotha Programme on account of it.
Iron Law of Wages