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    David Ricardo

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    Jennie Rose Umipig
    David Ricardo focused on the relationship between different economic classes in society - capitalists, landlords, and workers - and how their interests interacted. As population increased, more food was needed, requiring the use of less productive land and resulting in higher food prices. This benefited landlords through increased rent collection, but hurt workers through higher costs of living. It also reduced capitalist profits by raising the minimum wage needed to attract workers. Ricardo's theory examined these dynamics between classes and the economic effects of utilizing less productive resources to meet growing demand.

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    David Ricardo

    Uploaded by

    Jennie Rose Umipig
    19 views2 pages
    David Ricardo focused on the relationship between different economic classes in society - capitalists, landlords, and workers - and how their interests interacted. As population increased, more food was needed, requiring the use of less productive land and resulting in higher food prices. This benefited landlords through increased rent collection, but hurt workers through higher costs of living. It also reduced capitalist profits by raising the minimum wage needed to attract workers. Ricardo's theory examined these dynamics between classes and the economic effects of utilizing less productive resources to meet growing demand.

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    David Ricardo focused on the relationship between different economic classes in society - capitalists, landlords, and workers - and how their interests interacted. As population increased, more food was needed, requiring the use of less productive land and resulting in higher food prices. This benefited landlords through increased rent collection, but hurt workers through higher costs of living. It also reduced capitalist profits by raising the minimum wage needed to attract workers. Ricardo's theory examined these dynamics between classes and the economic effects of utilizing less productive resources to meet growing demand.

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    19 views2 pages

    David Ricardo

    Uploaded by

    Jennie Rose Umipig
    David Ricardo focused on the relationship between different economic classes in society - capitalists, landlords, and workers - and how their interests interacted. As population increased, more food was needed, requiring the use of less productive land and resulting in higher food prices. This benefited landlords through increased rent collection, but hurt workers through higher costs of living. It also reduced capitalist profits by raising the minimum wage needed to attract workers. Ricardo's theory examined these dynamics between classes and the economic effects of utilizing less productive resources to meet growing demand.

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    of 2

    David Ricardo -> he’s a utilitarian (in J.S.

    Mill) - If the market price of labor is more than


    the natural price of labor, then our
    - Principles of Political Economy and
    laborers would be happy. Gagastusin
    Taxation
    lang nila sa bagay na hindi mahalaga.
    First class of society They would think about the future –
    having another member of familyIf
    Capitalists opposite, hindi sila masaya.
    - Invest and make money (contribution to England, because of industrialization, there’s
    the economy is the money they spend, increase of population (market prices are high
    invest) and those wages are more than the needs of
    - Capital is their contribution to the the laborers) and there’s increase in demands of
    society; Capital is the part of the wealth food, consumer goods. Ricardo focuses on the
    of the country which is employed in need to have more foods (They have to use land
    production, and consists of food, – invest more so that the land is as productive
    clothing, tols, raw materials, machinery, as others
    etc, necessary to give effect to labor
    - Profit May rent na binabayaran sa land, nagincrease
    ang population and food, kinakailangan nilang
    Landlords gagamit ng ibang lupa. Yung lupa nay un
    - Own land (contribution to economy) babayaran ng rent. Yung lupa nay un hindi
    - Rent/ differential rent (what they get makakapagproduce as much as before. Ang
    from the economy; their share in the tawag doon ay differential rent. It will go to our
    economy) land lords. Hindi nagbebenefit ang workers. If
    - Their interests are inimical to society tumataas yung supply dapat bumababa yung
    (problem in the economy would be presyo ng pagkain but tumataas siya dahil
    landlord and their interest) ginagamit na lupa ay yung hindi productive as
    before (mas madami kang iiinvest nap era) Price
    Workers: of food is equal to average product (ilan
    - Addicted to the domestic delights of napoproduce ng productive at unproductive
    society (spend to what they like; they’re land)
    not able to save and therefore do not Capitalists are not happy since kailangan nilang
    have money to invest) pataasin yung market price of labor. If they
    - Contribution to economy (own labor, increase it, less profits for them. Less capital to
    bodies); their share/output in economy invest in the economy.
    is wage
    - Natural price and market price (actual Landlords are the only happy because they
    wage received by workers) receive rents including differential rent
    - Natural price (kailangan ng laborer at ng
    Theory of Comparative advantage
    family niya to survive) of labor is that
    price which is necessary to enable the England (but have comparative advantage in
    laborers (family survival), one with production of clothes)does not have
    another, to subsist and to perpetuate comparative advantage but France when it
    their race (price: cost of living now) comes to production of food (because they have
    more land).

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