The Standard of Living Debate

Abstract

Whether the standard of living of the labouring classes rose or fell during the initial stages of the Industrial Revolution is, of all the controversies of this period, the hardest fought. Yet, on the surface, there seems to be no argument against the fact that the national income per capita doubled between 1791–1851. This would naturally lead us to assume that the standard of living of the mass of the people improved. However, one needs to know:

• 1 the proportion of national income diverted from consumption to investment, which, in turn, depends on:

• 2 what proportion of consumption was going to property owners (rents and profits) and how much to workers (wages and salaries).