The Macroeconomic Perspectives of David Ricardo, Karl Marx, and John Stuart Mill
The Macroeconomic Perspectives of David Ricardo, Karl Marx, and John Stuart Mill
ECON 350 19 November 2012
Abstract
The author surveys three influential economists of the Classical era—Ricardo, Marx, and John Stuart Mill—and introduces the reader to their Macroeconomic perspectives based on some of their more prominent Macroeconomic theories.
David Ricardo
David Ricardo was a Classical Economist who lived from 1772 to 1823. In his professional life he wore many hats: he was a businessman, a financer, a speculator, and a member of Parliament. But what he is most remembered for is the role that he played in the evolution of economic theory, alongside of such other greats as John Stuart Mill and Thomas Malthus, among others. In examining the economic theories which he espoused it is interesting to consider the part that his above-mentioned professions played in influencing his positions. Through his experience as a businessman was undoubtedly able to gain insights into the workings of industry; through his experiences as a financer and a speculator he gleaned invaluable insights into the workings of the financial system; and through his experiences as a member of Parliament he no doubt acquired insights into the workings of government and politics that does much to add credibility to many of his economic expostulations. Although he worked diligently in the fields of both Macro- and Micro-economics we will be focusing here primarily on some of his more distinguishing Macroeconomic contributions. The principals within this field of economics which we will be focusing on in particular are: The Law of Comparative Advantage, Comparative Statics, International Money Movement, and Deficit Spending. The principal which is arguably the most important and enduring contribution that David Ricardo ever made to the field of Economics is The Law of Comparative Advantage, also known as The Law of Comparative Cost. This was a
ECON 350 19 November 2012
Abstract
The author surveys three influential economists of the Classical era—Ricardo, Marx, and John Stuart Mill—and introduces the reader to their Macroeconomic perspectives based on some of their more prominent Macroeconomic theories.
David Ricardo
David Ricardo was a Classical Economist who lived from 1772 to 1823. In his professional life he wore many hats: he was a businessman, a financer, a speculator, and a member of Parliament. But what he is most remembered for is the role that he played in the evolution of economic theory, alongside of such other greats as John Stuart Mill and Thomas Malthus, among others. In examining the economic theories which he espoused it is interesting to consider the part that his above-mentioned professions played in influencing his positions. Through his experience as a businessman was undoubtedly able to gain insights into the workings of industry; through his experiences as a financer and a speculator he gleaned invaluable insights into the workings of the financial system; and through his experiences as a member of Parliament he no doubt acquired insights into the workings of government and politics that does much to add credibility to many of his economic expostulations. Although he worked diligently in the fields of both Macro- and Micro-economics we will be focusing here primarily on some of his more distinguishing Macroeconomic contributions. The principals within this field of economics which we will be focusing on in particular are: The Law of Comparative Advantage, Comparative Statics, International Money Movement, and Deficit Spending. The principal which is arguably the most important and enduring contribution that David Ricardo ever made to the field of Economics is The Law of Comparative Advantage, also known as The Law of Comparative Cost. This was a
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