Economist Report Essay Example | Topics and Well Written Essays - 750 words

Economist Report - Essay ExampleRicardo was elected to the British parliament in 1819 as an independent representative of a borough in Ireland, Portarlington, which he served till his death in 1823.David Ricardo, lived in the times just at the beginning of the Industrial revolution and this is what perhaps influences his thinking on Machinery (discussed below). Ricardo took a discriminating interest in the study of economic science and formulated the Classical system of political economy. His interest in economics was sparked by a chance reading of go game Smiths The Wealth of Nations while on vacation in 1799, in which Adam Smith focuses most of his attention on the problem of economic growth and his view that an evolving capitalist system could benefit society as a whole. According to Smiths analysis the economy possesses unlimited upward potential.Ricardos first written comments on economics appear to be two essays written in 1810 and 1811 (The High Price of Bullion, a Proof o f the Depreciation of Bank Notes) articulating his position in favour of the Bullionist position. He argued in favour of a metallic currency, giving a fresh stimulus to the controversy about the policy of the Bank of England. This has since become known as the classical approach to the theory of money, which argued for the resumption of the convertibility of paper money into gold. The Bullion Committee appointed by the House of Commons in 1819 confirmed Ricardos views and recommended the elevate of the Bank Restriction Act.Ricardo was a firm believer in Says Law that states that there can be no demand without supply and that recession does non occur because of failure in demand or lack of money. In these tracts Ricardo also suggested the impossibility of a general glut, or an excess supply of all goods in an economy as proposed by Thomas Robert Malthus. This provoked a debate with Malthus that culminated in Ricardo writing a series of notes on Mathuss 1820 principles. These notes were published posthumously as Notes on Malthus.In 1815 he published his first complete work Essay on the Influence of a Low Price of Corn on the salary of Stock where he introduced the differential theory of rent and the law of diminishing returns to land cultivation. He argued that raising the duties on imported grain had the effect of increasing the value of corn and hence increasing the incomes of landowners and the aristocracy at the expense of the working classes and the rising industrial class. In Essay Ricardo formulated his theory of distribution in a one-commodity (corn) economy. With salary at their natural level, Ricardo argued that rate of profit and rents were determined residually in the agricultural sector. He then used the concept of merchandise to claim that the agricultural profit and wage rates would be equal to the counterparts in industrial sectors. With this theory, he could show that a rise in wages did not lead to higher prices, but merely lowered profit s.Ricardo took economics to an unprecedented degree of theoretical sophistication by formalising the Classical system more understandably and consistently than anyone before had done and what became known as the Classical orRicardian School (of thought).In