Clear Quote by David Ricardo
“But it is clear that the price of labour has no necessary connection with the price of food, since it depends entirely on the supply of labourers compared with the demand.”
About This Quote
Source Book: Principles of Political Economy and Taxation, 1817
Labor wages are set by the balance of workers available versus jobs, not by food costs.
In simple terms: Wages depend on worker supply and demand, not food prices.
Key Takeaway
Consider labor market dynamics when analyzing wages.
Themes
economics
labor markets
supply and demand
Mood
analytical
neutral
Type
economic
theoretical
When to use this quote
- policy negotiations
- career planning
- business budgeting
- inflation analysis
Key Concepts
Classical economics
price theory
Questions to Reflect On
- How do modern labor shortages affect this principle?
A Different Perspective
Does ignoring food price relations oversimplify wage causes?
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