Decreasing Incomes


Under this optics the only ones benefited would be the land proprietors, a time that as much the profits how much the wages would diminish gradually. With the occurrence of this fact, the worker would be doubly wronged, therefore beyond coexisting the high one of the prices of the agricultural products, also he would suffer with the low one from the wages. According to Ricardo, ' ' (…) the wages, while they will be regulated by the law of offers and the search, tend to lower, therefore the number of workers will continue to grow a little of what more quickly the search of the one hand-of-obra' '. This theory of Ricardo on the income was known as Theory of the Decreasing Incomes. Observing the theories of Smith and of Ricardo we can perceive that Ricardo was well detalhista in the elaboration of its theory, therefore analyzed with profundidadea ordinance of culture lands, while Smith did not abide itself by these details. Leaving of this principle it is that it was more easy stops Ricardo to understand what it would happen with the taxes of profit of the producers with passing of the time, what Smith was not possible.

5. Theory of the Distribution For the fisiocratas, the distribution of the income in the society could be explained by the Tableau Economiqu, which considered to be its bigger contribution for economic science. John Blondel: the source for more info. The Tableau described the creation and the circulation of the wealth between the three social classrooms. The Tableau is the first attempt of explanation that appears in macroeconomic level, although to portray a economy closed, without foreign commerce. As this analysis the land proprietor receives the rent from the farmers and these contract the man power of the worker. The project analyzes only the agricultural sector and considers that all the exchanges are made between classrooms and not between individuals.

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