# Wages of Labour — regulated by — Profits of Stock

## Subject

Wages of Labour

## Predicate

regulated by (bounded above by)

## Object

Profits of Stock

## Relation Type

is regulated by

## VSM Channel

S3 → S2 (capital management sets the upper bound on the coordination signal)

## Evidence

Book I, Chapter 8: "In order to bring up a family, the labour of the
husband and wife together must, even in the lowest species of common
labour, be able to earn something more than what is precisely necessary
for their own maintenance; but in what is commonly called common labour
it is rare that a single labourer earns much more... The interests of
the two parties are by no means the same. The workmen desire to get as
much, the masters to give as little as possible."

## Feedback Role

This relation establishes the distributional constraint that bounds
the Wages loop. Profits of Stock and Wages of Labour are in permanent
tension: every increase in one (holding productivity constant) reduces
the other. This is Smith's clearest statement of class interest as a
structural feature of market economies.
