Cases Quote by David Ricardo
“A rise of wages from this cause will, indeed, be invariably accompanied by a rise in the price of commodities; but in such cases, it will be found that labour and all commodities have not varied in regard to each other, and that the variation has been confined to money.”
About This Quote
Source Book: Principles of Political Economy and Taxation, 1817
Higher wages tend to raise commodity prices, but the relative value between labor and goods stays constant; only money changes.
In simple terms: Wages up, prices up, but labor‑goods balance unchanged.
Key Takeaway
Recognize that price changes may reflect money shifts, not real value changes.
Themes
economics
inflation
labor markets
Mood
analytical
neutral
Type
economic
theoretical
When to use this quote
- wage negotiations
- budget planning
- policy analysis
Key Concepts
classical economics
price theory
Questions to Reflect On
- How do wage increases affect real purchasing power?
- What role does money supply play in price changes?
A Different Perspective
May ignore other factors like productivity or demand.
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