"...without a knowledge of [the law of rent], it is impossible to understand the effect of the progress of wealth on profits and wages, or to trace satisfactorily the influence of taxation on different classes of the community"

"RICARDO IDENTIFIED an organising principle that is akin to the laws of nature", writes Fred Harrsion. "Magnetism is the organising principle for lines of power on and inside our planet.

Gravity is the organising principle for orbiting planets in space: thanks to the work of Newton and Einstein, we now understand how solid masses relate to each other, and the speed of their interaction. The tidal movements of oceans, for example, are explained by gravitational pull, as is the flow of water down a mountain to the sea. We need to understand these laws to make sense of everyday realities. Through our deeper comprehension of the forces of nature, we can work with nature to achieve ever deeper accomplishments in the human voyage through time and space.

Ricardo's Law explains the pull and push of land, labour and capital in the economy. With this law, we can begin to understand the various quan- tities of those factors that are used; and the reasons for the distribution of the income that flows from productive activity."

The law should not be underestimated, notes Phil Anderson. Indeed, a thorough working knowledge of this law is the basis upon which I make all my economic forecasts and earned substantial market profits so far. This is not at all difficult to understand and learn. I have found David Ricardo's statement above to be absolutely true - and so have all my past class participants.

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