FACTOID # 16: In the 2000 Presidential Election, Texas gave Ralph Nader the 3rd highest popular vote count of any US state.
 
 Home   Encyclopedia   Statistics   States A-Z   Flags   Maps   FAQ   About 
   
 
WHAT'S NEW
 

SEARCH ALL

FACTS & STATISTICS    Advanced view

Search encyclopedia, statistics and forums:

 

 

(* = Graphable)

 

 


Encyclopedia > David Ricardo
David Ricardo

David Ricardo
Born April 14, 1772(1772-04-14)
London, Great Britain
Died September 11, 1823 (aged 51)
Gloucestershire, United Kingdom

David Ricardo (18 April 177211 September 1823), a political economist, is often credited with systematizing economics, and was one of the most influential of the classical economists, along with Thomas Malthus and Adam Smith. He was also a businessman, financier and speculator, and amassed a considerable fortune. David Ricardo Taken from http://www. ... April 14 is the 104th day of the year (105th in leap years) in the Gregorian calendar, with 261 days remaining. ... Year 1772 (MDCCLXXII) was a leap year starting on Wednesday (link will display the full calendar) of the Gregorian calendar (or a leap year starting on Sunday of the 11-day slower Julian calendar). ... This article is about the capital of England and the United Kingdom. ... is the 254th day of the year (255th in leap years) in the Gregorian calendar. ... 1823 was a common year starting on Wednesday (see link for calendar). ... Gloucestershire (pronounced ; GLOSS-ter-sher) is a county in South West England. ... is the 108th day of the year (109th in leap years) in the Gregorian calendar. ... Year 1772 (MDCCLXXII) was a leap year starting on Wednesday (link will display the full calendar) of the Gregorian calendar (or a leap year starting on Sunday of the 11-day slower Julian calendar). ... is the 254th day of the year (255th in leap years) in the Gregorian calendar. ... 1823 was a common year starting on Wednesday (see link for calendar). ... The Politics series Politics Portal This box:      Political economy was the original term for the study of production, the acts of buying and selling, and their relationships to laws, customs and government. ... Classical economics is widely regarded as the first modern school of economic thought. ... Thomas Robert Malthus, FRS (13th February, 1766 – 29th December, 1834), was an English demographer and political economist. ... For other persons named Adam Smith, see Adam Smith (disambiguation). ...

Contents

Personal life

Born in London, Ricardo was the third of seventeen children in a Sephardic Jewish family (from Portugal) that emigrated from the Netherlands to Great Britain just prior to his birth. At age 14, after a brief schooling in Holland, Ricardo joined his father at the London Stock Exchange, where he began to learn about the workings of finance. This beginning set the stage for Ricardo's later success in the stock market and real estate. This article is about the capital of England and the United Kingdom. ... Sephardim (ספרדי, Standard Hebrew Səfardi, Tiberian Hebrew ardî; plural Sephardim: ספרדים, Standard Hebrew Sfaradim, Tiberian Hebrew ) are a subgroup of Jews, generally defined in contrast to Ashkenazim and/or . ... The Source by Greyworld, in the new LSE building Paternoster Square. ...


Ricardo rejected the orthodox Jewish beliefs of his family and eloped with a Quaker, Priscilla Anne Wilkinson, when he was 21, leading to estrangement from his close family. It seems likely, for example, that his mother never spoke to him again. This was around the same time Ricardo became a Unitarian. Orthodox Judaism is the formulation of Judaism that adheres to a relatively strict interpretation and application of the laws and ethics first canonised in the Talmudic texts (Oral Torah) and as subsequently developed and applied by the later authorities known as the Gaonim, Rishonim, and Acharonim. ... “Quaker” redirects here. ... Topics in Christianity Movements · Denominations Ecumenism · Preaching · Prayer Music · Liturgy · Calendar Symbols · Art · Criticism Important figures Apostle Paul · Church Fathers Constantine · Athanasius · Augustine Anselm · Aquinas · Palamas · Luther Calvin · Wesley Arius · Marcion of Sinope Archbishop of Canterbury · Catholic Pope Coptic Pope · Ecumenical Patriarch Christianity Portal This box:      Unitarianism is the belief...


Ricardo became interested in economics after reading Adam Smith's The Wealth of Nations in 1799 on a vacation to the English resort of Bath. This was Ricardo's first contact with economics. He wrote his first economics article at age 37 and within another ten years he reached the height of his fame. For other persons named Adam Smith, see Adam Smith (disambiguation). ... Adam Smith An Inquiry into the Nature and Causes of the Wealth of Nations is the magnum opus of the Scottish economist Adam Smith, published on March 9, 1776 during the Scottish Enlightenment. ... , Bath is a small city in Somerset, England most famous for its historic baths fed by three hot springs. ...


Ricardo's work with the stock exchange made him quite wealthy, which allowed him to retire from business in 1814 at the age of 42. He then purchased and moved to Gatcombe Park, an estate in Gloucestershire. Gatcombe Park is the private country home of Princess Anne, the Princess Royal, situated between the Gloucestershire villages of Minchinhampton and Avening, five miles south of Stroud. ... Gloucestershire (pronounced ; GLOSS-ter-sher) is a county in South West England. ...


In 1819, Ricardo took a seat in the House of Commons as the MP for Portarlington, an Irish borough. He held the seat until his death in 1823. In 1846 his nephew, John Lewis Ricardo, MP for Stoke-on-Trent, advocated free trade and the repeal of the Corn Laws. Type Lower House Speaker of the House of Commons Leader of the House of Commons Michael Martin, (Non-affiliated) since October 23, 2000 Harriet Harman, QC, (Labour) since June 28, 2007 Shadow Leader of the House of Commons Theresa May, PC, (Conservative) since December 6, 2005 Members 646 Political groups... A Member of Parliament, or MP, is a representative elected by the voters to a parliament. ... Portarlington was a former United Kingdom Parliament constituency, in Ireland, returning one MP. It was an original constituency represented in Parliament when the Union of Great Britain and Ireland took effect on 1 January 1801. ... This article is about the island of Ireland. ... A Member of Parliament, or MP, is a representative elected by the voters to a parliament. ... Free trade is an economic concept referring to the selling of products between countries without tariffs or other trade barriers. ... The Corn Laws, in force between 1815 and 1846, were import tariffs ostensibly designed to protect British farmers and landowners against competition from cheap foreign grain imports. ...


Ricardo was a close friend of James Mill, who encouraged him in his political ambitions and writings about economics. Other notable friends included Jeremy Bentham and Thomas Malthus, with whom Ricardo had a considerable debate (in correspondence) over such things as the role of land owners in a society. He also was a member of London's intellectuals, later becoming a member of Malthus' Political Economy Club, and a member of the King of Clubs. James Mill James Mill (April 6, 1773 - June 23, 1836), Scottish historian, economist and philosopher, was born at Northwater Bridge, in the parish of Logie-Pert, Angus, Scotland, the son of James Mill, a shoemaker. ... Jeremy Bentham (IPA: or ) (February 15, 1748 O.S. (February 26, 1748 N.S.) – June 6, 1832) was an English jurist, philosopher, and legal and social reformer. ... Thomas Robert Malthus, FRS (13th February, 1766 – 29th December, 1834), was an English demographer and political economist. ... The Political Economy Club was founded by James Mill[1] and a circle of friends in 1821 in London, for the purpose of coming to an agreement on the fundamental principles of political economy. ...


Ideas

Ricardo's most famous work is his Principles of Political Economy and Taxation. Ricardo opens the first chapter with a statement of the labour theory of value. Later in this chapter, he demonstrates that prices do not correspond to this value. He retained the theory, however, as an approximation. Ricardo continued to work on his value theory to the end of his life. Principles of Political Economy and Taxation is the title of a book by David Ricardo on ecomonics. ... The labor theory of value (LTV) is a theory in economics and political economy concerning a market-oriented society: the theory equates the value of an exchangeable good or service (i. ... To meet Wikipedias quality standards, this article or section may require cleanup. ...


This book introduces the theory of comparative advantage. According to Ricardo's theory, even if a country could produce everything more efficiently than another country, it would reap gains from specializing in what it was best at producing and trading with other nations. (Case & Fair, 1999: 812–818). Ricardo believed that wages should be left to free competition, so there should be no restrictions on the importation of agricultural products from abroad. In economics, David Ricardo is credited for the principle of comparative advantage to explain how it can be beneficial for two parties (countries, regions, individuals and so on) to trade if one has a lower relative cost of producing some good. ... Competition is the act of striving against others for the purpose of achieving gain, such as income, pride, amusement, or dominance. ...


The benefits of comparative advantage are both distributional and related to improved real income. Within Ricardo's theory distributional effects included that foreign trade could not directly affect profits because profits respond only in changes to the level of wages. The effects on income are always beneficial because foreign trade does not affect value.


Comparative advantage forms the basis of modern trade theory, reformulated as the Heckscher-Ohlin theorem, which states that a country has a comparative advantage in the production of a product if the country is relatively well-endowed with inputs that are used intensively in producing the product. (Case & Fair, 1999: 822). The Heckscher-Ohlin theorem is one of the four critical theorems of the Heckscher-Ohlin model. ...


Like Adam Smith, Ricardo was also an opponent of protectionism for national economies, especially for agriculture. He believed that the British "Corn Laws" — tariffs on agriculture products — ensured that less productive domestic land would be harvested and rents would be driven up. (Case & Fair, 1999: 812, 813). Thus, the surplus would be directed more toward feudal landlords and away from the emerging industrial capitalists. Since landlords tended to squander their wealth on luxuries, rather than investments, Ricardo believed that the Corn Laws were leading to the economic stagnation of the British economy. Parliament repealed the Corn Laws in 1846. Protectionism is the economic policy of restraining trade between nations, through methods such as high tariffs on imported goods, restrictive quotas, a variety of restrictive government regulations designed to discourage imports, and anti-dumping laws in an attempt to protect domestic industries in a particular nation from foreign take-over... The Corn Laws, in force between 1815 and 1846, were import tariffs ostensibly designed to protect British farmers and landowners against competition from cheap foreign grain imports. ...


Another idea associated with Ricardo is Ricardian equivalence, an argument suggesting that in some circumstances a government's choice of how to pay for its spending (i.e., whether to use tax revenue or issue debt and run a deficit) might have no effect on the economy. Ironically, while the proposition bears his name, he does not seem to have believed it. Economist Robert Barro is responsible for its modern prominence. Ricardian equivalence, or the Barro-Ricardo equivalence proposition, is a controversial economic theory which suggests that government budget deficits do not affect the total level of demand in an economy. ... Robert Barro Robert Barro (born 1944) is an influential macroeconomist and the Wesley Clair Mitchell Professor of Economics at Columbia University. ...


Ricardo is responsible for developing theories of rent, wages, and profits. He defined rent as the difference in the costs of the production between different tracts of land. The model for this theory basically said that while only one grade of land is being used for cultivation, rent will not exist, but when multiple grades of land are being utilised, rent will be charged on the higher grades and will increase with the ascension of the grade. As such, Ricardo believed that the process of economic development, which increased land utilisation and eventually led to the cultivation of poorer land, benefited first and foremost the landowners because they would receive the rent payments either in money or in product. Rent can refer to: Renting, a system of payment for the temporary use of something owned by someone else. ...


this is all wrong


Ricardo's theories of wages and profits

Ricardo believed that in the long run, prices reflect the cost of production, and referred to this long run price as a Natural price. The natural price of labour was the cost of its production, that cost of maintaining the labourer. If wages correspond to the natural price of labour, then wages would be at subsistence level. However, due to an improving economy, wages may remain indefinitely above subsistence level: Cost of production is the next best alternative forgone. ...

Notwithstanding the tendency of wages to conform to their natural rate, their market rate may, in an improving society, for an indefinite period, be constantly above it; for no sooner may the impulse, which an increased capital gives to a new demand for labour, be obeyed, than another increase of capital may produce the same effect; and thus, if the increase of capital be gradual and constant, the demand for labour may give a continued stimulus to an increase of people.…


It has been calculated, that under favourable circumstances population may be doubled in twenty-five years; but under the same favourable circumstances, the whole capital of a country might possibly be doubled in a shorter period. In that case, wages during the whole period would have a tendency to rise, because the demand for labour would increase still faster than the supply. (On the Principles of Political Economy, Chapter 5, "On Wages").

In his Theory of Profit, Ricardo stated that as real wages increase, real profits decrease because the revenue from the sale of manufactured goods is split between profits and wages. He said in his Essay on Profits, "Profits depend on high or low wages, wages on the price of necessaries, and the price of necessaries chiefly on the price of food." The term real wages refers to wages that have been adjusted for inflation. ...


Publications

Ricardo's publications included:

  • The High Price of Bullion, a Proof of the Depreciation of Bank Notes (1810), which advocated the adoption of a metallic currency
  • Essay on the Influence of a Low Price of Corn on the Profits of Stock (1815), which argued that repealing the Corn Laws would distribute more wealth to the productive members of society
  • On the Principles of Political Economy and Taxation (1817), an analysis that concluded that land rent grows as population increases. It also clearly laid out the theory of comparative advantage, which showed that all nations could benefit from free trade, even if a nation was less efficient at producing all kinds of goods than its trading partners.

1810 was a common year starting on Monday (see link for calendar). ... April 5-12: Mount Tambora explodes, changing climate. ... The Corn Laws, in force between 1815 and 1846, were import tariffs ostensibly designed to protect British farmers and landowners against competition from cheap foreign grain imports. ... On the Principles of Political Economy and Taxation (1817) is the title of a book by David Ricardo on economics. ... 1817 was a common year starting on Wednesday (see link for calendar). ... Land in economics comprises all naturally occurring resources whose supply is inherently fixed (i. ... In economics, David Ricardo is credited for the principle of comparative advantage to explain how it can be beneficial for two parties (countries, regions, individuals and so on) to trade if one has a lower relative cost of producing some good. ... Free trade is an economic concept referring to the selling of products between countries without tariffs or other trade barriers. ...

References

  • Case, Karl E. & Fair, Ray C. (1999). Principles of Economics (5th ed.). Prentice-Hall. ISBN 0-13-961905-4.
  • Samuel Hollander - The Economics of David Ricardo (University of Toronto Press, 1979)

Samuel Hollander (born April 6, 1937) is a British/Canadian/Israeli economist. ...

See also

In economics, David Ricardo is credited for the principle of comparative advantage to explain how it can be beneficial for two parties (countries, regions, individuals and so on) to trade if one has a lower relative cost of producing some good. ... International trade - an overview Absolute advantage Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) APEC Autarky Balance of trade barter Bilateral Investment Treaty (BIT) Bimetallism branch plant Bretton Woods Conference Bretton Woods system British timber trade Cash crop Comparative advantage Continental trading bloc Cost, insurance and freight Currency... The opportunity cost of capital is the expected return forgone by bypassing of other potential investment activities for a given capital. ... The Law of Rent was formulated by David Ricardo around 1809. ...

External links

Wikisource
Wikisource has original works written by or about:
David Ricardo
Parliament of the United Kingdom (1801–present)
Preceded by
Richard Sharp
Member of Parliament for Portarlington
1819–1824
Succeeded by
James Farquahar
Preceded by
(new constituency)
Member of Parliament for Stroud
2-seat constituency
(with William Henry Hyett)
1832–1833
Succeeded by
William Henry Hyett
George Poulett Scrope

  Results from FactBites:
 
David Ricardo (2223 words)
David Ricardo's family was descended from Iberian Jews who had fled to Holland during a wave of persecutions in the early 18th Century.
"Ricardo in Parliament", by Edwin Cannan 1894, EJ
Walras's Critique of Ricardo" by Heinz Kurz and Neri Salvadori
EH.Net Encyclopedia: David Ricardo (474 words)
David Ricardo (1772-1823) was one of the greatest theoretical economists of all time.
Ricardo, though, prospered in the financial business to a far greater extent than his father, amassing a fortune of about £700,000 (equivalent to approximately £40 million today).
For Ricardo, rent arises from the advantages that one site has over another due to differing degrees of soil fertility: rent per acre is highest on the most fertile land, and declines to zero on the worst quality soil.
  More results at FactBites »

 
 

COMMENTARY     


Share your thoughts, questions and commentary here
Your name
Your comments

Want to know more?
Search encyclopedia, statistics and forums:

 


Press Releases |  Feeds | Contact
The Wikipedia article included on this page is licensed under the GFDL.
Images may be subject to relevant owners' copyright.
All other elements are (c) copyright NationMaster.com 2003-5. All Rights Reserved.
Usage implies agreement with terms, 1022, m