David Ricardo
David Ricardo (18 April 1772 – 11 September 1823) was a British political economist. He was one of the most influential of the classical economists, along with Thomas Malthus, Adam Smith, and James Mill. He began his professional life as a broker and financial market speculator. He amassed a considerable personal fortune, largely from financial market speculation and, having retired, bought a seat in the U.K. Parliament. He held his parliamentary seat for the last four years of his life. Perhaps his most important legacy is his theory of comparative advantage, which suggests that a nation should concentrate its resources solely in industries where it is most internationally competitive and trade with other countries to obtain products not produced nationally. In essence, Ricardo promoted the idea of extreme industry specialization by nations, to the point of dismantling internationally competitive and otherwise profitable industries. In this thinking Ricardo assumed the existence of a national industry policy aimed at promoting some industries to the detriment of others. For Ricardo some form of Central Economic Planning was a given. Ricardo's theory of comparative advantage has been challenged by, among others, Joan Robinson and Piero Sraffa, but remains the cornerstone of the argument in favour of international free trade as a means of increasing economic prosperity. The theory of comparative advantage was the forerunner of the push towards globalization via increased international trade, the guiding theme in economic policy currently promoted by the OECD and the World Trade Organization.