A. Smith lived the last era in which the merchantilistic protection and control blocked up the social development but D. Ricardo formulated his economic thought when Industrial Revolution was almost completed. By observing their thought, this study in...
A. Smith lived the last era in which the merchantilistic protection and control blocked up the social development but D. Ricardo formulated his economic thought when Industrial Revolution was almost completed. By observing their thought, this study intend to comprehend the chronic situations of their economic thought, and to look the difference, inheritance and expansion of their thought, and to realize the influence of their thought to coming age.
A Smith's free competition=laissez-faire, 'invisible hand' are the expression of economic liberalism. D. Ricardo's the labour value theory, comparative cost theory-inherited from A. Smith's liberal thought-are regarded as the maturity of Iudustial Revolution.
A Smith and D. Ricardo believed passionately free trade and competition, their economic thought influenced powerfully radical Marxist and conservative neo-classical economic thought over 19-20 C.
A. Smith pointed profit has averagely declining tendency with economic progrees but D. Ricardo indicated such tendency is occuring under the limited conditions.
Though D. Ricardo was greatly influenced by A. Smith's 「Wealth of Nations」, he formulated contingency systematic theory transcending 「Wealth of Nations」, explaining the structure of capitalistic economy.
D. Ricardo explained the differential rent denying the absolute rent, and he developed his theory to the highest place possible, leaping over contradition which is inherent in the A. Smith's theory.
If A. Smith's ecomic theory is considered as a wellspring of all theory, D. Ricardo's important achivements in the history of the economic thought can be read in the value theory and distribution theory.