Modern economics often credits Adam Smith as its cornerstone, but another key figure, David Ricardo, has shaped our world in ways we rarely examine. Ricardo, the wealthiest stock trader of his day, developed the theory of comparative advantage, a concept that helped justify globalisation but concealed deeper ties to power, empire and slavery.

In this episode, Jess Miles speaks to Nat Dyer, author of Ricardo's Dream: How Economists Forgot the Real World and Led Us Astray. They unpack Ricardo’s legacy, from his famous theory involving English cloth and Portuguese wine to its surprising connections to the welfare state. They also explore why abstract economic models, despite their flaws and potential for manipulation, remain so dominant in shaping policies today.

Nat Dyer is a Fellow of the Schumacher Institute, the Royal Society of Arts (RSA) and the Bath Royal Literary and Scientific Institution (BRSLI). 

Find out more about the book at: https://bristoluniversitypress.co.uk/trade/ricardos-dream

The full transcript of the podcast is available here: https://www.transformingsociety.co.uk/2024/11/19/podcast-how-economics-left-the-real-world-behind/

Timestamps:

01:12 - What's your background, and why did you write the book?

03:12 - Was David Ricardo, and what was his dream?

08:42 - What is the example of English cloth and Portuguese wine?

18:02 - How was his theory able to become so influential?

22:16 - What does having this idealised view of economics mean for individuals?

29:25 - What's the relationship between Ricardo's legacy and the welfare state?

33:29 - How have these abstract theories contributed to climate change?

37:22 - Why do we trust, and defend, these models?

40:11 - What ideas are coming through to challenge these models?

45:08 - How do you feel about David Ricardo?

47:30 - What are you working on now?

Intro music:

Cold by yoitrax | @yoitrax

Music promoted by www.free-stock-music.com 

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