Editing David Ricardo (section)

===Value theory===
David Ricardo worked to fix the issues he felt were most concerning with [[Adam Smith]]’s Labour Theory of Value.<ref>{{Cite web |title=Adam Smith on the Labor Theory of Value {{!}} Adam Smith Works |url=https://www.adamsmithworks.org/documents/steven-horwitz-adam-smith-on-the-labor-theory-of-value |access-date=2024-05-13 |website=www.adamsmithworks.org |language=en}}</ref> Both men worked with the assumption that land, labour, and capital were the three basic factors of production. However, Smith narrowed in on labour as the determinant of value. Ricardo believes that with production having three factors it is impossible for only one of them to determine value on its own.<ref>{{Cite book|last=Sandmo|first=Agnar|title=Economics Evolving A History of Economic Thought|publisher=Princeton University Press|year=2011|isbn=978-0-691-14063-6|pages=74–76}}</ref> Ricardo illustrates his point by adapting Smith's deer-beaver analogy<ref>{{Cite web |title=Adam Smith on the Labor Theory of Value {{!}} Adam Smith Works |url=https://www.adamsmithworks.org/documents/chapter-vi-of-the-component-parts-of-the-price-of-commodities |access-date=2024-05-13 |website=www.adamsmithworks.org |language=en}}</ref> to show that even when labour is the only factor of production the hardship and tools of the labour will drive a wedge in the relative value of the good. Due to his criticisms of the Labour Theory of Value [[George Stigler]] called his theory a "93% labor theory of value".<ref>{{Cite journal|last=Stigler|first=George J.|year=1958|title=Ricardo and the 93% Labor Theory of Value|url=https://www.jstor.org/stable/1809772|journal=The American Economic Review|volume=48|issue=3|pages=357–367|jstor=1809772|issn=0002-8282}}</ref>

Ricardo's most famous work is his ''[[Principles of Political Economy and Taxation]]'' (1817). He advanced a [[labour theory of value]]:<ref>Ricardo, David (1817) ''On the Principles of Political Economy and Taxation''. Piero Sraffa (Ed.) Works and Correspondence of David Ricardo, Volume I, Cambridge University Press, 1951, p. 11.</ref>

<blockquote>The value of a commodity, or the quantity of any other commodity for which it will exchange, depends on the relative quantity of labour which is necessary for its production, and not on the greater or less compensation which is paid for that labour.</blockquote>

Ricardo's note to Section VI:<ref>Ricardo, David (1817) ''On the Principles of Political Economy and Taxation''. Piero Sraffa (Ed.) Works and Correspondence of David Ricardo, Volume I, Cambridge University Press, 1951, p. 47.</ref>

<blockquote>Mr. Malthus appears to think that it is a part of my doctrine, that the cost and value of a thing be the same;—it is, if he means by cost, "cost of production" including profit.</blockquote>