"If the quantity of labour realized in commodities, regulate their exchangeable value, every increase of the quantity of labour must augment the value of that commodity on which it is exercised, as every diminution must lower it"

David Ricardo, among the noteworthy classical economists, offers profound insight into the relationship between labor and worth in this quote. This excerpt from his more comprehensive economic theories underlines a key aspect of the labor theory of worth. Put simply, Ricardo asserts that the value of a commodity is directly proportional to the quantity of labor bought its production. For that reason, if the amount of labor-- measured in regards to the time, effort, and skill needed-- increases, the worth of the product similarly rises. Conversely, if less labor is needed, the value diminishes.

Ricardo's point of view is grounded in the concept that labor is the primary source of economic value. When he mentions "the amount of labour understood in products", Ricardo is referring to the tangible, measurable labor embodied in the production process of products. The assumption here is that labor is uniform and can be quantified, which allows it to serve as a standard step against which the worth of products is evaluated.

For instance, if a shoemaker invests more hours crafting a pair of shoes than before, due to greater quality material or a new method, Ricardo would argue that the shoes gain in value precisely since more labor is encapsulated in them. Conversely, if technological advancements or enhanced effectiveness minimize the need for labor input, the worth of the resulting product would fall.

Ricardo's argument is essential in comprehending early economic thoughts that see labor as the cornerstone of worth production, a theory that has actually been both built on and challenged in subsequent economic discourse. Critics, especially those in later customs such as the limited energy theory, argue against this labor-centric perspective by positing that subjective value and customer preferences play vital functions in identifying a commodity's worth. However, Ricardo's analysis provides important context for comprehending how early economists conceptualized the characteristics of labor and value.