David Ricardo
David Ricardo: A Pioneer in Economics and Politics
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Full Name and Common Aliases
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David Ricardo was born on April 18, 1772, as David Ricardo to a Jewish family of Italian descent. He is often referred to by his full name or simply as the Ricardian economist.
Birth and Death Dates
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Born: April 18, 1772
Died: September 11, 1823
Nationality and Profession(s)
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David Ricardo was a British economist of Portuguese Jewish descent. He is best known for his work in economics, particularly in the fields of international trade, comparative advantage, and macroeconomics.
Early Life and Background
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Ricardo's early life was marked by significant challenges. Born into a family of modest means, he received little formal education due to financial constraints. Despite these difficulties, Ricardo demonstrated exceptional intellectual abilities from an early age. He began working at the age of 14 as a clerk for a stockbroker, where he developed his skills in arithmetic and bookkeeping.
Major Accomplishments
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David Ricardo's most significant contributions to economics include:
Theory of Comparative Advantage: Ricardo introduced the concept that countries should specialize in producing goods for which they have a lower opportunity cost. This theory is a fundamental principle of international trade and has had a lasting impact on global economic policy.
Law of Rent: Ricardo identified the relationship between the supply and demand for land, leading to the development of the law of rent.
Critique of Malthusian Economics: Ricardo challenged Thomas Malthus's theory that population growth would always outstrip food production. Instead, he argued that technological advancements could lead to increased productivity.Notable Works or Actions
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Some of David Ricardo's most notable works include:
On the Principles of Political Economy and Taxation (1817): This book outlined Ricardo's theories on international trade, taxation, and the distribution of income.
The High Price of Bullion: A Proof of the Necessity of a Peaceable Resumption of Cash Payments* (1810): In this pamphlet, Ricardo argued that the British government should resume cash payments to stabilize the currency.
Impact and Legacy
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David Ricardo's work had far-reaching consequences for economic theory and policy. His theories on comparative advantage have shaped global trade policies, while his critique of Malthusian economics has influenced population growth debates. As a member of Parliament from 1819 until his death in 1823, Ricardo also played an important role in shaping British economic policy.
Why They Are Widely Quoted or Remembered
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David Ricardo is widely quoted and remembered for his groundbreaking contributions to economic theory and his impact on global trade policies. His theories continue to influence contemporary debates on international trade, taxation, and macroeconomic policy.
Quotes by David Ricardo
David Ricardo's insights on:
By far the greatest part of those goods which are the objects of desire, are procured by labour; and they may be multiplied, not in one country alone, but in many, almost without any assignable limit, if we are disposed to bestow the labour necessary to obtain them.
Rent is the portion of the earth, which is paid to the landlord for the user of the original and indestructible powers of the soil.
It is here we come to the heart of the matter. The economic principle of comparative advantage’, ’a country may, in return for manufactured commodities, import corn even if it can be grown with less labour than in the country from which it is imported.
If a commodity were in no way useful, – in other words, if it could in no way contribute to our gratification, – it would be destitute of exchangeable value, however scarce it might be, or whatever quantity of labour might be necessary to procure it.
In the course of these observations, I have often had occasion to insist, that rent never falls without the profits of stock rising.
If the quantity of labour realized in commodities, regulate their exchangeable value, every increase of the quantity of labour must augment the value of that commodity on which it is exercised, as every diminution must lower it.
The farmer and manufacturer can no more live without profit than the labourer without wages.
Nothing contributes so much to the prosperity and happiness of a country as high profits.