Fritz Rahmeyer
Aufstieg und Niedergang der Ricardianischen Wirtschaftstheorie
Abstract:
After showing different criteria for assessing
economic theories and in general terms the growth of (economic)
knowledge, the essentials of classical British economic theory
(Political Economy) are outlined. Next the scientific career and the
genesis of the works of Ricardo are dealt with. The building blocks of
his theory are Malthus’ law of population and his own theory
of land rent. They serve as a basis for developing his original theory
of income distribution among the three classes of society (landowners,
tenants, agricultural workers). His vision is - like that of Adam Smith
- a self-adjusting model of the economy.
Getting at first rid of rent, his intention was to show that - in
contrast to Smith - a decrease of profits is the result of an increase
in wages. Rent is a price determined, but not a price determining
factor. The decline of profits reduces capital accumulation and
economic growth and ends up in a stationary state of the economy. The
precondition of his analysis of income distribution was a theory of
value. Ricardo selected the quantity of embodied labour as an
invariable measure of value.
From a political point of view Ricardo opposed state interventions,
such as the corn laws and the poor laws. He had trust in a
self-regulating economy, unlike his friend and critic Thomas Malthus.
JEL: B 12, B 31, D 33
Paper:
Paper available as pdf-file.
Beitrag Nr. 304, Volkswirtschaftliche Diskussionsreihe, Institut
für
Volkswirtschaftslehre der Universität Augsburg
Contact:
Fritz
Rahmeyer,
University of Augsburg, Department of Economics, D-86135
Augsburg,
Germany, phone +49-821-598-4203, fax +49-821-598-4230,
E-mail: fritz.rahmeyer@wiwi.uni-augsburg.de
v.
K., 17.02.2009