Discussion Responses Required - 10 to 12 Hours at the Maximum

Key Term: David Ricardo Malone, Melissa BUSI-604 Fall 2017

Discussion 2: Part 2

Key Term: David Ricardo

BUSI-604

Fall 2017

Dr. Arthur Mazhambe

Key Term: David Ricardo Malone, Melissa BUSI-604 Fall 2017

1. Key Term and Why You Are Interested in It

David Ricardo is known as a key influencer of economics. His contributions to modern

economics is both profound and extraordinary. He was successful at a young age even after

being disowned from his family (Library of Economics and Liberty). We are familiar with

his principles today such as monetarism and comparative advantage. He was also

responsible for articulating what we know today as the law of diminishing marginal returns,

which has overwhelmingly impacted economics as we know it today. I am merely fascinated

by his brain and how he conceptualized so many unbelievable theories in his time. He was

truly a remarkable person in history.

2. Explanation of the Key Term

To understand David Ricardo it is important we look into his upbringing, his influences and

his successes and failures. What inspired him? What was his reasoning for making a stance

on economics?

His father made a fortune on the London Stock Exchange and David joined his father in the

stock exchange business at the young age of 14. He was so successful he earned what would

be considered around $100 million dollars today so he was able to focus on other things that

he loved; one being economics. His interest in economics came after he read Wealth of

Nations by Adam Smith. His interest soon became a quest and he studied economics for

over 10 years before he published his first works, The High Price of Bullion, a Proof of the

Depreciation of Bank Notes in 1810. His quest later became a passion and commitment to

make a difference in the business world (Spengler, J.).

3. Major Article Summary

Even something that is merely a hobby can change the world and the way in which we do

business. I not only admire David Ricardo for his success in business but also for the role he

played in our economy. He simply began journaling his ideas on economics and then

writing columns for the local newspaper. This evolved over time into published essays

ranging in topics from profits of stock to taxation. He manifested what we know today as the

law of diminishing returns. One of his concerns in studying economics is not far off from

one more economists and people have today; the rapid growth of our population. He was

later appointed to the House of Commons where he stayed until he was technically forced to

retire in 1823. David is still known today for being able to arrive at complex conclusions

while lacking the mathematical skills one would deem necessary today. I can completely

relate to this. Fellow economist David Friedman put it this way in his textbook, Price

Theory in 1990, “The modern economist reading Ricardo’s Principles feels rather as a

member of one of the Mount Everest expeditions would feel it, arriving at the top of the

mountain, he encountered a hiker clad in t-shirt and tennis shoes.” (Library of Economics and

Liberty).

Key Term: David Ricardo Malone, Melissa BUSI-604 Fall 2017

4. Discussion

In your own words, discuss each of the following points:

a. Sadly, besides David Ricardo’s biography and his own written works, there isn’t much more written about David. His findings are essential to the business world but so is his

story. How he achieved so much success at such a young age as well as his character and

personality were all contributing factors to how David made the impact in economics that

he did. David relates to the material we are studying because in part he discovered or

conceptualized some of the terminology we are familiar with today. He spoke up about

issues that were important to him and to the world and he raised valid concerns that still

should be looked at today such as how a rapidly growing population is impacting our

economy.

b. This was rather difficult to refine because as I mentioned above, there is not a lot written about David. Even in scholarly journals, there was less. If the term was something he

wrote about, I would be certain to discover more. What I found most intriguing through

all of the references as well as others that I did not feel were substantial enough to list,

was David was a charismatic young man and liked by many, which ultimately led to

much of his successes and opportunities while growing up. However, near the end of his

life, he did not appear to be liked by most. Perhaps it was a political thing since at this

time he was a Member of Parliament or maybe something else shifted for David. It

appears to me that he was ill and this could have contributed to his personality change.

Because he died shortly after retiring from Parliament at the age of 51.

References

Ricardo, David. (n.d.). Retrieved September 16, 2017, from

http://www.econlib.org/library/Enc/bios/Ricardo.html

Ricardo, David. (2005). The Works and Correspondence of David Ricardo, ed. Piero Sraffa with

the Collaboration of M.H. Dobb. Indianapolis: Liberty Fund. Vol. 1. Principals of

Political Economy and Taxation. Retrieved September 15, 2017, from

http://oll.libertyfund.org/titles/ricardo-the-works-and-correspondence-of-david-ricardo-

vol-1-principles-of-political-economy-and-taxation

Spengler, J.J. (2017, February 07). David Ricardo. Retrieved September 15, 2017, from

https://www.britannica.com/biography/David-Ricardo

(n.d.). Retrieved September 16, 2017, from

Key Term: David Ricardo Malone, Melissa BUSI-604 Fall 2017

http://www.d.umn.edu/cla/faculty/jhamlin/4111/Ricardo/David%20Ricardo.htm

(n.d.). Retrieved September 16, 2017, from

http://www.victorianweb.org/economics/ricardo2.html