Commodity Quote by David Ricardo
“Neither machines, nor the commodities made by them, rise in real value, but all commodities made by machines fall, and fall in proportion to their durability.”
About This Quote
Source Book: Principles of Political Economy and Taxation, 1817
Value of goods is determined by labor, not by machines; machines only affect durability and depreciation.
In simple terms: Machines don’t add value, they just wear down.
Key Takeaway
Focus on labor productivity, not machine count.
Themes
economics
value theory
production
durability
depreciation
Mood
analytical
critical
Type
economic
theoretical
When to use this quote
- manufacturing planning
- investment decisions
- pricing strategy
- asset management
Key Concepts
labor theory of value
capital depreciation
industrial economics
Questions to Reflect On
- How does durability affect pricing?
- Can labor intensity offset machine depreciation?
A Different Perspective
Machines can increase efficiency but may not raise intrinsic value.
