What did David Ricardo argue happens when workers received higher wages?

1 answer

Answer

1170087

2026-07-24 11:55

+ Follow

David Ricardo argued that when workers receive higher wages, it can lead to an increase in the labor supply. This, in turn, may result in diminishing returns to labor, as more workers enter the market, potentially driving down wages over time. Additionally, higher wages can also lead to increased demand for goods, which may boost production but could eventually lead to inflationary pressures. Overall, Ricardo believed that higher wages could have complex effects on the economy, balancing between improved living standards for workers and potential negative impacts on employment and prices.

ReportLike(0ShareFavorite

Copyright © 2026 eLLeNow.com All Rights Reserved.