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David Ricardo (1772—1823) was a British economist who was inspired by [[Adam Smith]]'s "The Wealth of Nations," began to study political economy.

David Ricardo (1772—1823) was a devotee in England of [[classical economics].  Ricardo was inspired by [[Adam Smith]]'s "The Wealth of Nations."

In 1817 Ricardo wrote "The Principles of Political Economy and Taxation" (1817), in which he argued for an "iron law of wages" whereby wages would always be near the minimum or subsistence level. He also argued that the value of any good was almost entirely dependent on the labor necessary to produce it.  For example, shoes that cost $50 would require 5 times as much labor for its production as did a watch costing $10.  These theories were wrong and later used by opponents of free enterprise in order to argue for government intervention.

In 1817 Ricardo wrote "The Principles of Political Economy and Taxation" (1817), in which he argued for an "iron law of wages" whereby wages would always be near the minimum or subsistence level. He also argued that the value of any good was almost entirely dependent on the labor necessary to produce it.  For example, shoes that cost $50 would require 5 times as much labor for its production as did a watch costing $10.  These theories were wrong and later used by opponents of free enterprise in order to argue for government intervention.