David Ricardo

Life

• Born: April 18, 1772, in London, England
• Education:
• Largely self-educated after age 14
• Studied mathematics, chemistry, and geology privately
• Career Highlights:
• Successful stockbroker (made fortune by age 41)
• Member of British Parliament (1819-1823)
• Key figure in Bullionist Controversy (1809-1811)
• Death: September 11, 1823, in Gatcombe Park, Gloucestershire

People Who Influenced Their Thought

• Adam Smith: Built upon Wealth of Nations foundations
• Thomas Malthus: Close intellectual rival and correspondent
• James Mill: Encouraged his writing and political career
• Jeremy Bentham: Utilitarian philosophy influence

Main Ideas and Publications

• On the Principles of Political Economy and Taxation (1817):
• Labor theory of value refinement
• Comparative advantage theory (foundation of modern trade theory)
• Rent theory and diminishing returns
• Ricardian Equivalence: Theory about debt and taxation
• Corn Laws Opposition: Advocated free trade policies

Controversies

• Labor Theory Limitations: Later challenged by marginalists
• Abstract Methodology: Criticized for unrealistic assumptions
• Trade Theory: Some modern economists question comparative advantage's completeness
• Empirical Verification: Difficulties testing some propositions

Key People Influenced

• John Stuart Mill: Systematized classical economics
• Karl Marx: Adapted his labor value theory
• Alfred Marshall: Built on his cost analysis
• Paul Samuelson: Modernized trade theory

Legacy

Ricardo established economics as rigorous analytical discipline and created enduring theories of trade, value and distribution that still shape policy debates.