David Ricardo .Classical Economics Figures

David Ricardo

David Ricardo (18 April 1772-11 September 1823) was an English political economist, often credited with the economy in a systematic, and is one of the most influential of the classical economists, along with Thomas Malthus, Adam Smith, and John Stuart Mill.

He is also a member of Parliament, businessmen, financiers and speculators, who collected a considerable personal fortune. Perhaps the most important contribution is the law of comparative advantage, the fundamental argument in favor of free trade between countries and between individual specialization. Ricardo argued that there is mutual benefit from trade (or exchange) even if one party (eg resource-rich countries, highly skilled artisan) is more productive in every possible area than its trading partners (eg resource-poor country, unskilled labor), during each concentrating on activities where it has relative productivity advantage


Biography

David Richardo Englishman who lived in the early 18 th century who place great importance on the role of the business to move dynamically in order to drive the economy of a country. Authored a book entitled "Principles of Political Economy and Taxation (1817). David believes that with the increase in capital is the key to economic growth in the nation, and the only way to do it by encouraging the production sector to get maximum profit.

David Richardo believe that the labor factor is most important in achieving the prosperity of a State. He also noted that as population increases the level of wages earned income or they will drop to a level where the wage was not enough to support their needs.

Along with population growth tanahpun prices soared, and this will decrease the amount of profits earned from the production sector. Modalpun growth is inhibited which would lower the economic growth pattern. However, Richardo believe that when this happens, the production sector have been first spread throughout the country so that its impact will be resolved soon and the economy may soon recover.

The theory put forward David Richardo many other economists influence. Karl Marx influenced Richardo through labor theory of value (labor theory of value) which explains that the value of an item is determined by the amount of labor required in the manufacture of goods production. John Stuart Mills also uses the theory of David Richardo in its efforts to make social reforms.


Personal life

Born in London, England, Ricardo was the third of 17 children of Sephardic Jewish family of Portuguese origin who had just moved from the Dutch Republic. His father was a successful stockbroker.
At the age of 21, Ricardo eloped with Anne Quaker, Priscilla Wilkinson, which led to estrangement from his family. His father disowned him and his mother apparently never spoke to him again.


Without family support, he started his own business as a stockbroker, where he became quite successful thanks to the connection he made while working with his father.
During the Battle of Waterloo, he bet on the victory of France and Britain invested in securities. By the time he retired from the Stock Exchange at the age of 43, his fortune is estimated at around £ 600,000. He then purchased and moved to Gatcombe Park, Gloucestershire real, now owned and lived in the Princess Anne, Princess Royal.


At the time of her marriage, Ricardo disconnected from Judaism and became Unitarian.He who has eight children, including three children, of whom Osman Ricardo (1795-1881; MP for Worcester 1847-1865) and the other David Ricardo (1803-1864, MP for Stroud 1832-1833), a member of parliament, while the third, Mortimer Ricardo, served as an officer in the Life Guards and a deputy lieutenant Oxfordshire. He was one of the original members of The Geological Society.His daughter Sarah Ricardo-Porter, who was married to George R. Porter and is a writer in her own right (eg, conversation in arithmetic).
Ricardo became interested in economics after reading Adam Smith's The Wealth of Nations in 1799 on vacation in Bath England resort. This is the first contact Ricardo with the economy. He wrote his first article at age 37 and the economy in ten years he reached the peak of his fame.
In 1819, Ricardo sat in the House of Commons, representing Portarlington, a small town Irish rotten. He held the chair, which was originally provided to him by his friend Richard "Conversation" Sharp, 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.
Ricardo was a close friend of James Mill, who encouraged him in his political ambitions and writings about the economy. Other notable friends included Jeremy Bentham and Thomas Malthus, with whom Ricardo had a debate (in correspondence) over such things as the role of landowners in the community. He also is a member of the London property, then become a member of Malthus on Political Economy Club, and members of King Club.