Class Quote by David Ricardo
“It is not by the absolute quantity of produce obtained by either class, that we can correctly judge of the rate of profit, rent, and wages, but by the quantity of labour required to obtain that produce.”
About This Quote
Source Book: Principles of Political Economy and Taxation, 1817
Profit, rent, and wages are determined by labor input, not merely output quantity.
In simple terms: Labor drives economic returns.
Key Takeaway
Focus on labor efficiency.
Themes
economics
labor
value
production
Mood
analytical
neutral
Type
economic
educational
When to use this quote
- business planning
- policy analysis
- wage negotiations
Key Concepts
classical economics
labor theory of value
Questions to Reflect On
- How does labor intensity affect pricing?
- What role does capital play?
A Different Perspective
Ignoring technology and capital can skew analysis.
