The Economic Times

Wealth quote of the day by David Ricardo, Profits depend on high or low wages, wages on the price of necessaries, and the price of necessaries chiefly on the price of food Why Ricardos wageprofit framework still matters today

Wealth Quote of the Day by David Ricardo: Profits depend on high or low wages, wages on the price of necessaries, and the price of necessaries chiefly on the price of food Food prices rose over 25% since 2020 in the US. Wages followed, but unevenly. Corporate profits stayed strong. David Ricardo explained this chain two centuries ago. Necessities set wages. Wages pressure profits. Food sits at the base. Todays inflation debate proves his theory still works.