higher exchangeable value of raw produce because more labor
was required in its production. If we become more efficient in
land cultivation, rents will go down because more can be
cultivated with less land. In addition, the exchangeable value
of commodities is undisturbed by natural or accidental causes.
Laborers derive their greatest pleasure when the market price
of labor exceeds the natural price. Therefore; wages will
increase in response to increases in the demand for labor.
Rises in rent are accompanied by increments in the share of
produce because landlords want more rent when harvests are
greater. Accordingly, the price of corn is a function of the labor to produce it. If wages go down, then prices must fall.
As the price of labor goes down, profits increase but the
price of the commodity may not go down. Taxes on profits
tend to increase the price of a commodity . If money is not
taxed, then all commodities will be subject to price increases.
Ultimately, a tax on land begets a tax on produce. In addition,
a tax on labor will raise its price. In addition, the price of
provisions determine the price paid to the worker. If money
decreases in value, all commodities will be subject to steep
price increases. This was seen in modern times with the
fluctuation of the Russian currency. Ultimately, bounty
lowers the price to foreigners because the government subsidizes
the bounty paid to the local merchants to stimulate trade.
The theory of rent transfers value but does not create it.
Ultimately, wages are determined by the price of food and
cost of production.
This theory of wages differs from Adam Smith who said that
wages were a function of the ease or hardship to do work, the
difficulty or expense of learning a trade, the constancy
of employment, the trust reposed in the workmen, the probability
of success or failure of the venture or the fear of misfortune.
David Ricardo's work is an important milestone in the theory
of economics and comparison to the work of Adam Smith.