Ricardo's Law

Book excerpt: Presenting insights into how income and wealth are produced and distributed, this study analyzes how, despite two centuries of capital accumulation, poverty persists in rich nations. Relying on the theories of David Ricardo—a 19th-century economist credited with developing the theory of rent—a thorough presentation of the history of this economic law, from the inscriptions on the clay tablets of ancient Babylonian merchants to statistics that portray the modern economy, is provided. Presenting readers with conceptual tools that will motivate them to reengage in the democratic process, this examination dispels the myths of contemporary fiscal policy while providing keen insights into the history, and future, of economics.