Centsible Thoughts

Economics was still a relatively new concept as David Ricardo was becoming an economist. Ricardo was born in 1772, right at the time when Economics as a science was being introduced to the masses by Adam Smith. David Ricardo was born to a father who introduced him to economics at an early age because of his Stock Exchange career. 

Having early exposure to economics only made Ricardo a more capable economist. It made him a successful stockbroker, similar to his father. Because of his insight into the economy, he was soon able to make remarkable connections in economics. He published many works that are still held in high regard today. David Ricardo had many core beliefs, but the most important were his beliefs in free trade, specialization, and international trade. These beliefs are exemplified in the many works that he published. He highlights the importance of free trade and specialization of production in his work, “Principles of Political Economy and Taxation.” In this work, he argues that in order for economies to reach peak efficiency, they need to produce at the lowest opportunity cost and trade for goods. 

Ricardo was not alone in his pursuit of economics; he took inspiration from all-time greats like Adam Smith and Ibn Khaldun. These figures inspired his works, most notably through the lens of Classical economics. Classical economics is best defined as the economy doing what is best for the economy. The most notable Classical economist is Adam Smith, with his idea of the invisible hand that guides the economy to its most efficient output through individual rationality. David Ricardo, a Classical economist, had a very similar style to Smith with his theories having aspects borrowed from Smith. Ricardo was also very influential and would establish a strong hold on the field of economics long after his death. Countless modern economists list Ricardo as one of their inspirations for their works. Some economists are Thomas Robert Malthus, John Maynard Keynes, and numerous others. As previously mentioned, modern trade theory is based on Ricardo’s work, and Ricardo’s comparative wage theory is still valid and holds up to modern standards. 

David Ricardo was one of the most influential Classical economists that ever lived. His over 200-year-old theories still hold true in the modern day and have inspired many after him. The field of economics would not be where it is today without David Ricardo and his work.