David Ricardo Identifies Seven Key Economic Principles (Chronology of European History)
Article abstract: David Ricardo identifies seven key economic principles, creating a systematic theory of economics.
Summary of Event
Perhaps the three most influential figures in economic theory are Karl Marx, associated with the development of communist theory; John Maynard Keynes, whose best-known economic theory is that of deficit spending, in which he argues that it is the government’s responsibility to control and regulate fluctuations in the economy; and David Ricardo, the foremost classical economist. Classical economic theory is based on the principles of individual liberty, which allows a person to use his or her initiative to acquire property and wealth. The easiest way for the government to encourage such accumulations was a policy of laissez-faire, or “hands off.”
Adam Smith was the first of the major classical economists. He began to examine economic theory in his 1776 publication, An Inquiry into the Nature and Causes of the Wealth of Nations. David Ricardo (born April 18, 1772, in London) came next, bringing a new level of order and a strong...
(The entire section is 1550 words.)
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