On the Principles of Political Economy and Taxation
Encyclopedia
On the Principles of Political Economy and Taxation (1817
) is a book
by David Ricardo
on economics
. The book concludes that land
rent grows as population increases. It also clearly lays out the theory of comparative advantage
, which shows that all nations can benefit from free trade
, even if a nation lacks an absolute advantage
in all sectors of its economy.
Ricardo claims in the preface that Turgot
, Stuart, Adam Smith
, Jean-Baptiste Say
, Sismondi, and others had not written enough "satisfactory information" on the topics of rent, profit, and wages. Principles of Political Economy is ostensibly Ricardo's effort to fill that gap in the literature. Regardless of whether the book achieved that goal, it secured, according to Ronald Max Hartwell
, Ricardo's position among the great classical economists Adam Smith
, Thomas Robert Malthus
, John Stuart Mill
, and Karl Heinrich Marx
.
Some of this article's content is derived from the Wikipedia
article "David Ricardo
".
1817 in literature
The year 1817 in literature involved some significant new books, including Sir Walter Scott's Rob Roy, Lord Byron's Manfred, Hegel's Encyclopedia of the Philosophical Sciences, and the death of Jane Austen mid-year.-New books:...
) is a book
Book
A book is a set or collection of written, printed, illustrated, or blank sheets, made of hot lava, paper, parchment, or other materials, usually fastened together to hinge at one side. A single sheet within a book is called a leaf or leaflet, and each side of a leaf is called a page...
by David Ricardo
David Ricardo
David Ricardo was an English political economist, often credited with systematising economics, and was one of the most influential of the classical economists, along with Thomas Malthus, Adam Smith, and John Stuart Mill. He was also a member of Parliament, businessman, financier and speculator,...
on economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
. The book concludes that land
Land (economics)
In economics, land comprises all naturally occurring resources whose supply is inherently fixed. Examples are any and all particular geographical locations, mineral deposits, and even geostationary orbit locations and portions of the electromagnetic spectrum. Natural resources are fundamental to...
rent grows as population increases. It also clearly lays out the theory of comparative advantage
Comparative advantage
In economics, the law of comparative advantage says that two countries will both gain from trade if, in the absence of trade, they have different relative costs for producing the same goods...
, which shows that all nations can benefit from free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
, even if a nation lacks an absolute advantage
Absolute advantage
In economics, principle of absolute advantage refers to the ability of a party to produce more of a good or service than competitors, using the same amount of resources...
in all sectors of its economy.
Ricardo claims in the preface that Turgot
Anne Robert Jacques Turgot, Baron de Laune
Anne-Robert-Jacques Turgot, Baron de Laune , often referred to as Turgot, was a French economist and statesman. Turgot was a student of Francois Quesnay and as such belonged to the Physiocratic school of economic thought...
, Stuart, Adam Smith
Adam Smith
Adam Smith was a Scottish social philosopher and a pioneer of political economy. One of the key figures of the Scottish Enlightenment, Smith is the author of The Theory of Moral Sentiments and An Inquiry into the Nature and Causes of the Wealth of Nations...
, Jean-Baptiste Say
Jean-Baptiste Say
Jean-Baptiste Say was a French economist and businessman. He had classically liberal views and argued in favor of competition, free trade, and lifting restraints on business...
, Sismondi, and others had not written enough "satisfactory information" on the topics of rent, profit, and wages. Principles of Political Economy is ostensibly Ricardo's effort to fill that gap in the literature. Regardless of whether the book achieved that goal, it secured, according to Ronald Max Hartwell
Ronald Max Hartwell
Ronald Max Hartwell was an influential historian of the British Industrial Revolution and Professor of Economic History.Hartwell's first academic appointment was at University of New South Wales...
, Ricardo's position among the great classical economists Adam Smith
Adam Smith
Adam Smith was a Scottish social philosopher and a pioneer of political economy. One of the key figures of the Scottish Enlightenment, Smith is the author of The Theory of Moral Sentiments and An Inquiry into the Nature and Causes of the Wealth of Nations...
, Thomas Robert Malthus
Thomas Malthus
The Reverend Thomas Robert Malthus FRS was an English scholar, influential in political economy and demography. Malthus popularized the economic theory of rent....
, John Stuart Mill
John Stuart Mill
John Stuart Mill was a British philosopher, economist and civil servant. An influential contributor to social theory, political theory, and political economy, his conception of liberty justified the freedom of the individual in opposition to unlimited state control. He was a proponent of...
, and Karl Heinrich Marx
Karl Marx
Karl Heinrich Marx was a German philosopher, economist, sociologist, historian, journalist, and revolutionary socialist. His ideas played a significant role in the development of social science and the socialist political movement...
.
Some of this article's content is derived from the Wikipedia
Wikipedia
Wikipedia is a free, web-based, collaborative, multilingual encyclopedia project supported by the non-profit Wikimedia Foundation. Its 20 million articles have been written collaboratively by volunteers around the world. Almost all of its articles can be edited by anyone with access to the site,...
article "David Ricardo
David Ricardo
David Ricardo was an English political economist, often credited with systematising economics, and was one of the most influential of the classical economists, along with Thomas Malthus, Adam Smith, and John Stuart Mill. He was also a member of Parliament, businessman, financier and speculator,...
".
External links
- On the Principles of Political Economy and Taxation, by David Ricardo. Complete, fully searchable text at the Library of Economics and Liberty.
- Ricardo on Value: the Three Chapter Ones. A presentation tracing the changes in the Principles (University of Southampton).
- Biography of David Ricardo, at the Concise Encyclopedia of Economics