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Economics isn't science, and while Ricardo has some brilliant insights, it isn't a science; he barely models anything. It isn't even a hypothesis since you can
by WillPostForFood 2y ago
Economics isn't science, and while Ricardo has some brilliant insights, it isn't a science; he barely models anything. It isn't even a hypothesis since you can never really test it. The core of his idea is this:
the rate of profits can never be increased but by a fall in wages [...] If, therefore, by the extension of foreign trade, or by improvements in machinery, the food and necessaries of the labourer can be brought to market at a reduced price, profits will rise.
I.e., use trade to get to lower wages