David Ricardo (1772)

Ricardo was a British economist who made a fortune in the stock market before turning to the study of political economy, publishing his major work, The Principles of Political Economy and Taxation, in 1817. According to his labor theory of value, the value of almost any good is a function of the labor needed to produce it; thus, a $10 watch requires ten times more labor than a $1 pencil. According to his “iron law of wages,” what keeps wages stabilized around the subsistence level? Discuss

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