Arbitrary Quote by David Ricardo
“Gold and silver, like other commodities, have an intrinsic value, which is not arbitrary, but is dependent on their scarcity, the quantity of labour bestowed in procuring them, and the value of the capital employed in the mines which produce them.”
About This Quote
Source Book: Principles of Political Economy and Taxation, 1817
Commodities hold value because they are scarce, require labor, and involve capital investment.
In simple terms: Scarcity, labor, and capital give commodities value.
Key Takeaway
Consider these factors when assessing worth.
Themes
economics
value
scarcity
Mood
analytical
thoughtful
Type
economic
philosophical
When to use this quote
- investment decisions
- resource pricing
- policy making
- educational curricula
Key Concepts
labor theory of value
capital allocation
Questions to Reflect On
- Do we overvalue certain commodities?
- How does labor intensity affect price?
A Different Perspective
Market prices also reflect demand and speculation.
