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On the Principles of Political Economy and Taxation
David Ricardo · Passages from the same work, in order.
On the Principles of Political Economy and Taxation, Excerpt 121
It has been already remarked, that if the labour of ten men will, on land of a certain quality, obtain 180 quarters of wheat, and its value be 4_l._…
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On the Principles of Political Economy and Taxation, Excerpt 122
Now it is evident, that if out of these equal values, the farmer is at one time obliged to pay wages regulated by the price of wheat at 4_l._, and at…
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On the Principles of Political Economy and Taxation, Excerpt 123
In this case, therefore, I think it is clearly demonstrated that a rise in the price of corn, which increases the money wages of the labourer,…
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On the Principles of Political Economy and Taxation, Excerpt 124
But the case of the farmer of the old and better land will be in no way different; he also will have increased wages to pay, and will never retain…
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On the Principles of Political Economy and Taxation, Excerpt 125
It will be seen then, that whatever rise may take place in the price of corn, in consequence of the necessity of employing more labour and capital to…
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On the Principles of Political Economy and Taxation, Excerpt 126
It will be seen too that, in all cases, the same sum of 720_l._ must be divided between wages and profits. If the value of the raw produce from the…
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On the Principles of Political Economy and Taxation, Excerpt 127
Thus in every case, agricultural, as well as manufacturing profits are lowered by a rise in the price of raw produce, if it be accompanied by a…
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On the Principles of Political Economy and Taxation, Excerpt 128
The farmer then, although he pays no part of his landlord's rent, that being always regulated by the price of produce, and invariably falling on…
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On the Principles of Political Economy and Taxation, Excerpt 129
And supposing that the original capital of the farmer was 3000_l._, the profits of his stock being in the first instance 480_l._, would be at the…
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On the Principles of Political Economy and Taxation, Excerpt 130
But the _rate_ of profits will fall still more, because the capital of the farmer, it must be recollected, consists in a great measure of raw produce…
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On the Principles of Political Economy and Taxation, Excerpt 131
If a manufacturer had also employed 3000_l._ in his business, he would be obliged in consequence of the rise of wages, to increase his capital, in…
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On the Principles of Political Economy and Taxation, Excerpt 132
There are few commodities which are not more or less affected in their price by the rise of raw produce, because some raw material from the land…
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On the Principles of Political Economy and Taxation, Excerpt 133
It may be said that I have taken it for granted, that money wages would rise with a rise in the price of raw produce, but that this is by no means…
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On the Principles of Political Economy and Taxation, Excerpt 134
The effects produced on profits, would have been the same, or nearly the same, if there had been any rise in the price of those other necessaries,…
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On the Principles of Political Economy and Taxation, Excerpt 135
180 qrs. at 20_l._ per qr. or L3600 the value of 144 qrs. {to landlord for rent, being the } --- {difference between 36 and 180 qrs.} 2880 36 qrs.…
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On the Principles of Political Economy and Taxation, Excerpt 136
In all these calculations I have been desirous only to elucidate the principle, and it is scarcely necessary to observe, that my whole basis is…
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On the Principles of Political Economy and Taxation, Excerpt 137
I have already said, that long before this state of prices was become permanent, there would be no motive for accumulation; for no one accumulates…
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On the Principles of Political Economy and Taxation, Excerpt 138
I must again observe, that the rate of profits would fall much more rapidly than I have estimated in my calculation: for the value of the produce…
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On the Principles of Political Economy and Taxation, Excerpt 139
Many trades would derive some advantage, more or less, from the same source. The brewer, the distiller, the clothier, the linen manufacturer, would…
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On the Principles of Political Economy and Taxation, Excerpt 140
They who hold this argument agree with me, that the profits of different employments have a tendency to conform to one another; to advance and recede…
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On the Principles of Political Economy and Taxation, Excerpt 141
If, by the introduction of machinery, the generality of the commodities on which revenue was expended fell 20 per cent. in value, I should be enabled…
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On the Principles of Political Economy and Taxation, Excerpt 142
It is not, therefore, in consequence of the extension of the market that the rate of profits is raised, although such extension may be equally…
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On the Principles of Political Economy and Taxation, Excerpt 143
It has been my endeavour to shew throughout this work, that the rate of profits can never be increased but by a fall in wages, and that there can…
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On the Principles of Political Economy and Taxation, Excerpt 144
Foreign trade, then, though highly beneficial to a country, as it increases the amount and variety of the objects on which revenue may be expended,…
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On the Principles of Political Economy and Taxation, Excerpt 145
The remarks which have been made respecting foreign trade, apply equally to home trade. The rate of profits is never increased by a better…
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On the Principles of Political Economy and Taxation, Excerpt 146
Under a system of perfectly free commerce, each country naturally devotes its capital and labour to such employments as are most beneficial to each.…
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On the Principles of Political Economy and Taxation, Excerpt 147
In one and the same country, profits are, generally speaking, always on the same level; or differ only as the employment of capital may be more or…
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On the Principles of Political Economy and Taxation, Excerpt 148
If Portugal had no commercial connexion with other countries, instead of employing a great part of her capital and industry in the production of…
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On the Principles of Political Economy and Taxation, Excerpt 149
The quantity of wine which she shall give in exchange for the cloth of England, is not determined by the respective quantities of labour devoted to…
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On the Principles of Political Economy and Taxation, Excerpt 150
England may be so circumstanced, that to produce the cloth may require the labour of 100 men for one year; and if she attempted to make the wine,…
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On the Principles of Political Economy and Taxation, Excerpt 151
To produce the wine in Portugal, might require only the labour of eighty men for one year, and to produce the cloth in the same country, might…
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On the Principles of Political Economy and Taxation, Excerpt 152
It would undoubtedly be advantageous to the capitalists of England, and to the consumers in both countries, that under such circumstances, the wine…
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On the Principles of Political Economy and Taxation, Excerpt 153
Experience however shews, that the fancied or real insecurity of capital, when not under the immediate control of its owner, together with the…
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On the Principles of Political Economy and Taxation, Excerpt 154
Gold and silver having been chosen for the general medium of circulation, they are, by the competition of commerce, distributed in such proportions…
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On the Principles of Political Economy and Taxation, Excerpt 155
Thus, suppose before the improvement in making wine in England, the price of wine here were 50_l._ per pipe, and the price of a certain quantity of…
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On the Principles of Political Economy and Taxation, Excerpt 156
Suppose that, after the improvement, wine falls to 45_l._ in England, the cloth continuing at the same price. Every transaction in commerce is an…
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On the Principles of Political Economy and Taxation, Excerpt 157
If the markets be favourable for the exportation of wine from Portugal to England, the exporter of the wine will be a seller of a bill, which will be…
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On the Principles of Political Economy and Taxation, Excerpt 158
But if the prices of wine were such that no wine could be exported to England, the importer of cloth would equally purchase a bill; but the price…
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On the Principles of Political Economy and Taxation, Excerpt 159
If then this premium for a bill on England should be equal to the profit on importing cloth, the importation would of course cease; but if the…
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On the Principles of Political Economy and Taxation, Excerpt 160
But the diminution of money in one country, and its increase in another, do not operate on the price of one commodity only, but on the prices of all,…
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On the Principles of Political Economy and Taxation, Excerpt 161
It is thus that the money of each country is apportioned to it in such quantities only as may be necessary to regulate a profitable trade of barter.…
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On the Principles of Political Economy and Taxation, Excerpt 162
No change whatever takes place in the circumstances of Portugal; but England finds that she can employ her labour more productively in the…
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On the Principles of Political Economy and Taxation, Excerpt 163
Both countries would probably find it their interest to make their own wine and their own cloth; but this singular result would take place: in…
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On the Principles of Political Economy and Taxation, Excerpt 164
This, however, is only a seeming advantage to Portugal, for the quantity of cloth and wine together produced in that country would be diminished,…
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On the Principles of Political Economy and Taxation, Excerpt 165
Thus then it appears, that the improvement of a manufacture in any country tends to alter the distribution of the precious metals amongst the nations…
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On the Principles of Political Economy and Taxation, Excerpt 166
To simplify the question, I have been supposing the trade between two countries to be confined to two commodities, to wine and cloth, but it is…
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On the Principles of Political Economy and Taxation, Excerpt 167
Beside the improvements in arts and machinery, there are various other causes which are constantly operating on the natural course of trade, and…
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On the Principles of Political Economy and Taxation, Excerpt 168
This will in some measure account for the different value of money in different countries; it will explain to us why the prices of home commodities,…
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On the Principles of Political Economy and Taxation, Excerpt 169
Of these two countries, if one had the advantage in the manufacture of goods of one quality, and the other in the manufacture of goods of another…
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On the Principles of Political Economy and Taxation, Excerpt 170
In the former part of this work, we have assumed for the purpose of argument, that money always continued of the same value; we are now…
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On the Principles of Political Economy and Taxation, Excerpt 171
Although, however, money is subject to such perpetual variations, and consequently the prices of the commodities which are common to most countries,…
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On the Principles of Political Economy and Taxation, Excerpt 172
Profits, it cannot be too often repeated, depend on wages; not on nominal, but real wages; not on the number of pounds that may be annually paid to…
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On the Principles of Political Economy and Taxation, Excerpt 173
In the early states of society, when manufactures have made little progress, and the produce of all countries is nearly similar, consisting of the…
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On the Principles of Political Economy and Taxation, Excerpt 174
This difference in the value of gold, or which is the same thing, this difference in the price of corn in the two countries, would exist although the…
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On the Principles of Political Economy and Taxation, Excerpt 175
If however Poland should be the first to improve her manufactures, if she should succeed in making a commodity which was generally desirable,…
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On the Principles of Political Economy and Taxation, Excerpt 176
These I believe to be the only two causes which regulate the comparative value of money in the different countries of the world; for although…
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On the Principles of Political Economy and Taxation, Excerpt 177
Any improvement in the facility of working the mines, by which the precious metals may be produced with a less quantity of labour, will sink the…
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On the Principles of Political Economy and Taxation, Excerpt 178
This higher value of money will not be indicated by the exchange; bills may continue to be negotiated at par, although the prices of corn and…
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On the Principles of Political Economy and Taxation, Excerpt 179
Whenever the current of money is forcibly stopped, and when money is prevented from settling at its just level, there are no limits to the possible…
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On the Principles of Political Economy and Taxation, Excerpt 180
When each country has precisely the quantity of money which it ought to have, money will not indeed be of the same value in each, for with respect to…
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