April 18 marks the 1772 birthday of David Ricardo, English political economist and one of the most influential thinkers in economic theory. An advocate for free trade and the abolition of slavery, Ricardo’s most famous work is his Principles of Political Economy and Taxation (1817).
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David Ricardo
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The principle of comparative advantage, most famously identified by Ricardo, is often used to defend international trade. But, properly understood, it does far more. The vast majority of trade on any level, including that between individuals, is explained by comparative advantage.
Still, it should be seen that Ricardo’s attempt to explain prices exclusively in terms of material and technologic considerations was wrong-headed. There were thinkers ahead of him in his own time.