David Ricardo
Ricardo’s main concern was with the improvement of the living conditions of the labouring classes, for which he emphasized the necessity of the free importation of corn (On the Principles of Political Economy, and Taxation, 1817).
In his view, if the economy grows in a closed system, more and more of the economic surplus will be absorbed by rent, and the real wage rate and the profit rate will decline. In order to postpone the arrival of the stationary state of zero economic growth to a more distant future, he recommended developing industries by adopting the policy to import cheap food from abroad. This policy will distribute a larger part of the surplus to productive classes (labourers and capitalists), for which the income distribution becomes more equal and the majority of population will enjoy a higher living standard. The mass poverty will be reduced by that policy. His policy recommendation of the importation of cheap food from abroad is a means to prevent the deterioration of income distribution as between productive classes and to reduce mass poverty.As to the extreme poverty and the effects of the Poor Laws, Ricardo basically agreed with the view of Malthus. However, he had a stronger abolitionist position of the Poor Laws than Malthus. He feared that the poor relief expenditures under the existing Poor Laws might absorb the whole economic surplus of the economy. Ricardo recognized the necessity of controlling the population growth. He admitted that trade unions can contribute to improving the living conditions of labourers. In his view, trade unions do not disturb the fair and free competition in markets (Ricardo 1951-55, VIII: 316, Ricardo’s letter to McCulloch, 4 December 1820). For Ricardo, it was necessary to reform the Parliament dominated by landlords to realize the policy of free importation of corn (food) from abroad. He recognized the necessity of education of common people to reduce poverty, for which he maintained two schools for children of the poor. He advocated the establishment and running of savings banks for labourers to give them the incentive and the chances to make savings which would raise their living standard.