David Ricardo Quotes
Again two manufacturers may employ the same amount of fixed, and the same amount of circulating capital; but the durability of their fixed capitals may be very unequal.
Ricardo, David. On the Principles of Political Economy, and Taxation. John Murray, 1817, p. 25.
This is a classic illustration of a quotation illustrating the problem that political discussions have with the issue of causality. Conrad is absolutely correct in stating that investment and innovation as the direct cause for most productivity. However, without the demand created by consumption (or the prospect of it) there will be little capital and effort at innovation. There is a causal chain and different ideological proponents argue for their preferred link in the chain tending to ignore the other links. Many liberals tout increasing consumption and pay little attention to the investment and innovation—an error of the opposite of Conrad’s.
David Ricardo was a British political economist, one of the most influential of the classical economists along with Thomas Malthus, Adam Smith and James Mill. He was also a politician, and a member of the Parliament of Great Britain and Ireland.