Famous quote by David Ricardo

"The facility of obtaining food is beneficial in two ways to the owners of capital, it at the same time raises profits and increases the amount of consumable commodities"

About this Quote

David Ricardo, a popular classical economic expert, made significant contributions to financial theory, particularly in the locations of lease, earnings, and revenues. In this quote, Ricardo touches upon the interaction between capital, profits, and the schedule of consumable products.

The phrase "The center of getting food" implies that the ease or effectiveness with which food can be acquired is a crucial factor in financial production and distribution. Ricardo stresses 2 main advantages of this facility for the "owners of capital", usually comprehended as those who control the methods of production, rather than laborers or customers.

First of all, he argues that the facility raises revenues. In economic terms, if food-- an essential product-- is easily available and can be acquired at a lower expense, it decreases the expenses connected with labor given that food is an essential need for employees. Lower subsistence expenses suggest that less of the overall revenue from production is required to sustain labor, thereby increasing the surplus that can be appropriated by capital owners as profit. This aligns with Ricardo's theories of comparative advantage and rent, as minimized input costs in one sector (e.g., agriculture) can improve profitability across associated sectors.

Secondly, Ricardo keeps in mind that this facility increases the amount of consumable products. When essential products like food are available and inexpensive, it can result in increased production of other goods given that resources can be diverted from fundamental sustenance to other production or services. As employees invest a smaller portion of their earnings on essential items, they have more disposable earnings for other products, driving demand and facilitating economic growth. This indicates a more varied and abundant market of consumable items, which can cause diverse economic development and potentially improved standards of living.

Through this analysis, Ricardo highlights the reinforcing loop between efficient food procurement, success for capital owners, and the expansion of the marketplace for consumable items, showing the interconnected nature of these economic elements.

More details

TagsFood

About the Author

United Kingdom Flag This quote is written / told by David Ricardo between April 18, 1772 and September 11, 1823. He/she was a famous Economist from United Kingdom. The author also have 26 other quotes.
Go to author profile

Similar Quotes