- David Ricardo (1772–1823) was a classical economist best known for his theory on wages and profit, the labor theory of value, the theory of comparative advantage, and the theory of rents. David Ricardo and several other economists also simultaneously and independently discovered the law of diminishing marginal returns.
Jan 20, 2021 · David Ricardo (1772–1823) was a classical economist best known for his theory on wages and profit, the labor theory of value, the theory of comparative advantage, and the theory of rents.
David Ricardo (18 April 1772 – 11 September 1823) was a British political economist, one of the most influential of the classical economists along with Thomas Malthus, Adam Smith and James Mill.   He was also a politician, and a member of the Parliament of Great Britain and Ireland .
- Key Contributions by Ricardo to Basic Economic Questions
Ricardo used the labor theory of value to show that distribution of income follows a systematic pattern over time. He sought to promote laissez faire in a non-contextual way. In his works, Ricardo expounded the conflict between the landlord’s interests and the capitalist’s interests. As a stockbroker who turned to an economist, Ricardo was fixated on methodologies and theories of value. He also looked into public finance, diminishing returns, rent, and international trade. Ricardo took over from Adam Smith, and that is why many economic questions addressed in his book were responses to the questions raised in the “Wealth of Nations”, which was published by Adam Smith. In addition to offering pure theory, Ricardo also redirected economics away from method and scope that were used and supported by Smith. During his time, the burning issue for economists and politicians was tariffs, and Ricardo did not shy away from the agenda. He abstracted from the economy of his time and then set up...
In the end, some of Ricardo’s eventual theories were questionable because they were conceived in the abstract sense. Nevertheless, the theories were instrumental in influencing or analyzing different economic and political policies during his time and today in regards to free trade. The discussion shows that many of Ricardo’s assumptions on the benefits of free trade and claims work best when other factors affecting the relationship of the variables are constant. For example, when analyzing price and demand curves, one has to assume that the supply remains constant. Overall, the concepts work best in a perfect competition scenario.
Bouare, O. (2009). An evaluation of David Ricardo’s theory of comparative costs: Direct and indirect critiques. Journal of Economic Development, 34(1), 99-126. Klocke, S. (2012). Friedrich List’s “The national system of political economy” -A critical analysis from the perspective of the Austrian School of Economics (Bachelor’s Thesis, Goethe University, Frankfurt am Main). Web. Landreth, H., & Colander, D. C. (n.d.). History of economic thought.Boston, MA: Houghton Mufflin Company. Rima, I. H. (2009). Development of economic analysis(7th ed.). New York: Routledge. Why did The Economist favor free trade? (2013). The Economist.Web.
David Ricardo maintained that the economy generally moves towards a standstill. His analysis is rooted in a modified version of the labor theory of value. He held out the belief that the rate of profit for society as a whole depends on the amount of labor necessary to support the workers who farm "the most barren land that can still maintain agriculture" This model breaks land down into categories based on average fertility rates.
While Ricardo's name may not be used as much as Adam Smith's in our modern economic discussions, his ideas have had a profound impact. He published three books in the early 1800s, and after his ...
At age twenty-seven, after reading Adam Smith's The Wealth of Nations, Ricardo got excited about economics. He wrote his first economics article at age thirty-seven and then spent only fourteen years—his last ones—as a professional economist. Ricardo first gained notice among economists over the "bullion controversy."