Ricardo D

When1:  1817

Who:    David Ricardo [Ricardo, David]

What:   economist

Where:  England

works\  Principles of Political Economy and Taxation [1817]

Detail: He lived 1772 to 1823 and studied rents and agriculture and invented labor theory of value and growth. Land scarcity as population increases causes diminishing returns from agriculture, so food prices rise relative to other prices. Workers wages rise and reduce profit rates. With no incentive for investing, output, capital, and labor remain constant from then on. Rising wages cause even higher population and bring wages back down to subsistence level. Rents depend on land agricultural uses.

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Date Modified: 2022.0224