Capital Quote by David Ricardo
“There can be no greater error then in supposing that capital is increased by non-consumption.”
About This Quote
Source Book: Principles of Political Economy and Taxation, 1817
He warns that assuming capital grows without consumption is a fundamental mistake.
In simple terms: Assuming capital rises without consumption is wrong.
Key Takeaway
Beware of unrealistic economic assumptions.
Themes
economics
capital
consumption
Mood
analytical
cautious
Type
academic
philosophical
When to use this quote
- policy making
- financial planning
- educational curricula
Key Concepts
Macroeconomics
investment theory
resource allocation
Questions to Reflect On
- How does consumption affect capital?
- What policies prevent this error?
A Different Perspective
The view may overlook cases where capital can increase via savings.
