David Ricardo

Date of Birth: April 18, 1772

Zodiac Sign: Aries

Date of Death: September 11, 1823

Biography

David Ricardo was a prominent British political economist, born on April 18, 1772, in London, England. He is best known for his influential contributions to economic theory, particularly the theory of comparative advantage, which remains a fundamental concept in international trade economics. Ricardo’s work laid the foundation for modern economics and significantly influenced later economists like John Stuart Mill and Karl Marx. Ricardo was the third of 17 children in a Sephardic Jewish family that had emigrated from the Netherlands to Great Britain. He began working for his father, a successful stockbroker, at the age of 14. However, a falling out with his family following his marriage to a Quaker, Priscilla Anne Wilkinson, led him to pursue a career independently. His foray into economics began in earnest after reading Adam Smith’s “The Wealth of Nations” in 1799. Ricardo quickly became an influential figure in economic theory, publishing his seminal work, “Principles of Political Economy and Taxation,” in 1817. This book introduced several key concepts, including the law of diminishing returns and the theory of rent, significantly shaping economic thought. Ricardo was also a Member of Parliament from 1819 until his death in 1823. He used his position to advocate for free trade and economic reforms. Despite his short life, his contributions to economics have left an enduring legacy.

5 Interesting Facts about David Ricardo

1. David Ricardo is best known for developing the theory of comparative advantage, which argues that nations should specialize in producing goods where they have a lower opportunity cost, thus benefiting all trading partners.

2. He amassed a significant fortune as a stockbroker and financier, which allowed him to retire early and focus on his economic studies and writing.

3. Ricardo was a staunch advocate for free trade and opposed the Corn Laws, which imposed tariffs on imported grain.

4. He was a close friend and intellectual sparring partner of James Mill, the father of John Stuart Mill.

5. Despite his critical stance on many of Adam Smith’s theories, Ricardo was greatly influenced by Smith’s work and considered him a foundational figure in economic thought.

5 Most Interesting Quotes from David Ricardo

1. “The farmer and manufacturer can no more live without profit than the labourer without wages.”

2. “Gold and silver, however, are not by nature money, but money by nature is gold and silver.”

3. “Experience has shown that the trade which comes nearest to a perfectly free state is the most profitable to the country.”

4. “Labour, like all other things which are purchased and sold, and which may be increased or diminished in quantity, has its natural and its market price.”

5. “Nothing contributes so much to the prosperity and happiness of a country as high profits.”

Highest Net Worth Achieved

David Ricardo amassed a fortune estimated to be around £700,000 at the time of his death, which would be equivalent to several million pounds today.

Children

David Ricardo and his wife Priscilla Anne Wilkinson had eight children. Their children included Osman Ricardo, who later became a Member of Parliament, and Mortimer Ricardo.