Ricardo's argument for comparative advantage is presented in an algae break form, as Richard was saying. But I think there's also some clear political encoding within the example that he used. Ricardo was making the point that the future for England is in industrial production and the past was in the agricultural sector. And this is a way of politically challenging the landlords in Parliament to continue to make economic policy in a way that favored the Agricultural sector.
Melvyn Bragg and guests discuss one of the most influential economists from the age of Adam Smith and Thomas Malthus. Ricardo (1772 -1823) reputedly made his fortune at the Battle of Waterloo, and he made his lasting impact with his ideas on free trade. At a time when nations preferred to be self-sufficient, to produce all their own food and manufacture their own goods, and to find markets for export rather than import, Ricardo argued for free trade even with rivals for the benefit of all. He contended that existing economic policy unduly favoured landlords above all others and needed to change, and that nations would be less likely to go to war with their trading partners if they were more reliant on each other. For the last two hundred years, Ricardo’s Theory of Comparative Advantage in support of free trade has been developed and reinterpreted by generations of economists across the political spectrum.
With
Matthew Watson
Professor of Political Economy at the University of Warwick
Helen Paul
Lecturer in Economics and Economic History at the University of Southampton
And
Richard Whatmore
Professor of Modern History at the University of St Andrews and Co-Director of the St Andrews Institute of Intellectual History
Producer: Simon Tillotson