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David Ricardo

  • Why cutting spending is now the only way to revive the economy

    Opinion

    With Brits stashing away cash in fear of further tax hikes under Labour, cutting spending is now the only way forward to grow the UK economy.

    Breaking news event with reporters and cameras capturing a significant moment at an international business conference
  • Method in Trump’s madness? What economic theory teaches us about tariffs

    Opinion

    Trump's tariffs have sent the world into a frenzy but there could be method yet. Economic theory shows that tariffs reduce prices, writes Paul Ormerod.

    WASHINGTON, DC - APRIL 02: U.S. President Donald Trump holds up a chart while speaking during a “Make America Wealthy Again” trade announcement event in the Rose Garden at the White House on April 2, 2025 in Washington, DC. Touting the event as “Liberation Day”, Trump is expected to announce additional tariffs targeting goods imported to the U.S. (Photo by Chip Somodevilla/Getty Images)
  • Tedium alone won’t restore confidence in the economy

    The City View

    The theory of Ricardian Equivalence posits that financing public spending out of taxes or borrowing will have the same overall economic consequences. This, David Ricardo argued in 1820, was because rational consumers understand that debt will eventually have to be paid off. They will therefore set aside current income in anticipation of future tax rises. [...]

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