CRITIQUING EFFERVESCENT RICARDIAN ECONOMICS AND COMMODITY THEORY OF VALUE.part 1

We appraise as well as critique critical contribution of Ricardian theory of value to the explosive growth of world economics.

Then the blogger Ibikunle Abraham Laniyan proposes the new marsolist theory of Commodity value.

David Ricardo was an Iberian Jew and British economist one of the most important figures in the Development of economics and economic history.He formulated the classical system and classical school of economics .He became a household name with a couple of landmark proposition in the field of economic thought.They include the theory of rent ,the law of diminishing returns  and most importantly the theory of comparative advantage .

Nevertheless like every artist, shaped by the environment , Ricardo was no exception left behind unuequaled legacy and unsurpassed ideology which dominated the 19th century and much beyond.Although his father had migrated to England as stock broker shortly after his birth in 1772 later fled to Holland to evade persecution in early 18th century .He was third sibling in the seventeen members of the family.He was gainfully employed at age 14th after brief schooling in Holland by his father in London stock exchange where he mastered the art of sharetrading.At age 21,he broke apart from his family and the orthodox Jewish faith and became a Quaker.He started the same business of share trading and dealership in government securities,he was taught .By 1814 was immensely rich at 41and later bought an estate Gatcomb Park at Gloucestershire and settled down as country gentleman.He was surrounded by intellectual friends.James Stuart Mill was his best friend.Infact Thomas Malthus was another.He was elected into British Parliament bought seat as liberal borough in 1819.He was influenced by Adam Smith a member of classical school as he categorised them.He also authored a couple of papers and books.Beginning from 1809 he started penning essays on currency issues,paper money,rents, etc.He was a partial supporter of bullionist revolution.What has since become a classical approach and classical orthodoxy to theory of money emanates from a pair of tracts  in 1810-1811 he wrote on this argument.He opposed general glut or excess supply of goods and provoked response from Thomas Malthus.They engaged in debates and some of the best in economic profession over the last tercentenary.They persisted debates in their extensive correspondence led to series of notes ,Ricardo on Malthus in 1820 and published postmortem.He supported J.B.Says and dismissed Malthus  underconsumption thesis as infantile and theoretically impossible.This debates however did not affect their friendship and sometimes Ricardo offered investing tips such as investing in bonds in anticipation of British victory at Waterloo.Though Malthus declined Ricardo succeeded and made a huge killing.The theory of rent and the law of diminishing returns was applied to land cultivation and invited debates from Malthus ,Torrens and Edward West and published three weeks before the Congress of Vienna in February 1815.In his master piece "The Principles Of Political Economy And Taxation"articulated the theory of distribution and the theory of value.He started criticizing Adam Smith's alternatives with the 1817 book and the notion of labour commanded theories of value.He criticized this notion that made value a function of wages and income distribution.He came up with the suggestion rather of only labour embodied theory being more rational based on the belief that value was independent of distribution.He compared commodities to determine standard value of commodity and hardly completed it until his death.After his death an incomplete paper was found on his desk with the title"Invariable Standard of Value".The question of the true value of the commodity was left unresolved until the emergence of Piero Straffa in 1960.The Marxian theory of surplus value had persisted till the emergence of 1960s.

In the school of marsolism,in the Invariable Standard of Value,the nature of value and  the commercial value of Commodity is extremely volatile with the objective growth of economic history.The growth of value is inherent in the broad utility value of Commodity as no prior value and  unforeseen value ahead applies to a intrinsic commodity without the thoughful use and fortitudinous transaction of utility value.A given Commodity wields seven forms of value.They Include time value, labour value,land value, utility value or natural value,environmental value, commercial value, financial value.This broad utility of money gives a commodity the economic value of a Commodity.An Invariable Standard of value that Ricardo barely deciphered.The Strategic interaction of these component values with the environment of commerce including laws of the market and factors of Production and debt factors of production respectively creates sustainable leverage for the market and market Forces respectively.

The economic value of the Commodity is inherent in the value cycle given that this economic value responds in line with the dictates of market Forces and market rational forces respectively.