Chapter 10 : DAVID RICARDO (1772-1823)

DAVID RICARDO (1772-1823)

Introduction

• Next to Adam Smith, David Ricardo is the greatest name in the classical school of economics.

📌 Exam Tidbits

• Adam Smith vs David Ricardo — the difference is Smith was the founder of the classical school, while Ricardo became its leader.

Life and Works

• Early Life: Born in 1772 in a Jewish family in England; he was the third of seventeen children.
• Career & Wealth:
• Entered his father's stock-broker business at the age of 14 (had no formal schooling beyond this age).
• At 21, married a girl of a different faith, changed his Jewish faith, and was disowned by his father.
• Entered the stock market independently with funds advanced by friends, becoming richer than his father.
• Retired from business at 42 after amassing a huge fortune.
• Died at the age of 51, leaving behind a legacy of £725,000.
• Intellectual Journey:
• Turned to the systematic study of political economy late in life.
• At 27, he read Adam Smith's "Wealth of Nations", which kindled his interest in economics.
• Despite having an intellect as sharp as a razor's edge, he was a poor writer. In fact he wrote to his friend James Mill, "Oh that I were capable of writing a book."
• His friend James Mill encouraged him to write on economic problems with the assurance: "For as you are already the best thinker on political economy, I am resolved you shall also be the best writer."
• Major Publications:
• "On the Principles of Political Economy" (chief work, published in 1810).
• "The High Price of Bullion, a proof of the Depreciation of Bank Notes" (a pamphlet, published in 1810).

📌 Exam Tidbits

• David Ricardo (1772–1823) — Classical economist who left a legacy of £725,000 and published his chief work in 1810.
• James Mill — Encouraged Ricardo to write,…