On The Principles of Political Economy, and TaxationRicardo, David
General
On The Principles of Political Economy, and Taxation
Ricardo, David
Economics
The prices of the commodities would not rise, because the money in which
they are valued is by the supposition of an invariable value, always
requiring the same quantity of labour to produce it.
If the gold mine from which money was obtained were in the same country,
in that case, after the rise of wages, 210_l._ might be necessary to be
employed, as capital, to obtain the same quantity of metal that 200_l._
obtained before: for the same reason that the hunter and fisherman
required 10_l._ in addition to their capitals, the miner would require
an equal addition to his. No greater quantity of labour would be
required in any of these occupations, but it would be paid for at a
higher price, and the same reasons which should make the hunter and
fisherman endeavour to raise the value of their game and fish, would
cause the owner of the mine to raise the value of his gold. This
inducement acting with the same force on all these three occupations,
and the relative situation of those engaged in them being the same
before and after the rise of wages, the relative value of game, fish,
and gold, would continue unaltered. Wages might rise twenty per cent.,
and profits consequently fall in a greater or less proportion, without
occasioning the least alteration in the relative value of these
commodities.
Now suppose, that with the same labour and fixed capital, more fish
could be produced, but no more gold or game, the relative value of fish
would fall in comparison with gold or game. If, instead of twenty
salmon, twenty-five were the produce of one day's labour, the price of a
salmon would be sixteen shillings instead of a pound, and two salmon and
a half, instead of two salmon, would be given in exchange for one deer,
but the price of deer would continue at 2_l._ as before. In the same
manner, if fewer fish could be obtained with the same capital and
labour, fish would rise in comparative value. Fish then would rise or
fall in exchangeable value, only because more or less labour was
required to obtain a given quantity; and it never could rise or fall
beyond the proportion of the increased or diminished quantity of labour
required.
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