Ricardo, David

(redirected from Ricardo)
Also found in: Dictionary, Thesaurus, Encyclopedia, Wikipedia.
Related to Ricardo: David Ricardo

Ricardo, David

(1772–1823) an English economist who, in his Principles of Political Economy and Taxation (1817), argued that the value of products is determined by the amount of labour needed to produce them and developed a theory of distribution to explain how this value is shared between major classes in society (see LABOUR THEORY OF VALUE). Ricardo suggested that however prosperous the economy, wages could never rise above subsistence level. As workers became more prosperous, they would have more children and, as these children grew up, this additional labour supply would force wages down: an ‘iron law of wages’.

Ricardo argued that capitalists would not benefit much from economic progress either, since competition would keep their prices down and wage payments would cut into their profits. He regarded landlords as being the only real beneficiaries from economic progress since, with a finite amount of arable land and a growing population to feed, the landlords’ rental income would grow and the value of their land would rise. Rising rents would raise the cost of food produced and workers would need larger wages to pay for food, eroding capitalists’ profits. Ricardo's theories were used by the emerging industrialists to fight for free trade and an end to high tariffs on imported grain so as to lower food prices and keep wages low. See also ECONOMIC RENT.

References in periodicals archive ?
It has been a real achievement on the part of Ricardos production team to increase manufacturing capacity for such a complex transmission to meet Bugattis strong customer demand, commented Ricardo Performance Products MD Mark Barge.
Ricardo Automotive MD, Rory Fisher, said, 'I am pleased to be able to sign this MoU with the University of South Wales Centre for Automotive & Power System Engineering.
Threatened When questioned, Ricardo claimed that he'd stabbed Joshua in self-defence after they'd rowed.
Ricardo Preto for Rustan's, after all, is for working women in need of smart clothes that can go from work to after-hours.
Ricardo provides multi-industry consultancy for engineering, technology, project innovation and strategy.
Ricardo joined his father and the ISF to return immediately to Beirut, where investigators debriefed the boy and gathered any information they could about his captors.
Carpintero canadiense que ha sido reconocido por los genealogistas como descendiente de Ana de York, la hermana del rey Ricardo.
It's alleged Ricardo picked up a sword and stabbed Sutter in the abdomen.
Ricardo was sentenced to 51/2 to 6 years in prison.
Two eponymous international conferences were held in Tokyo in September 2011, and March 2012, organized by the Ricardo Society, an organization founded in 2000 by a group of Japanese scholars to promote the study of David Ricardo's (1772-1823) theory and thought.
Ricardo, then aged 22, was found guilty of murder following a trial at Manchester Crown Court in July 2009.