New Books in Sociology Nat Dyer, "Ricardo’s Dream: How Economists Forgot the Real World and Led Us Astray" (Bristol UP, 2024)
May 1, 2025
Nat Dyer, a writer and researcher specializing in global political economy, delves into the legacy of David Ricardo, a key figure in economic theory. He highlights how Ricardo's abstract models have obscured real-world issues like power and inequality. The conversation critiques the simplistic assumptions of modern economic theories and discusses the socio-economic consequences of globalization and colonialism. Dyer also emphasizes the limitations of historical economic models in addressing pressing challenges, including climate change and societal well-being.
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Ricardo's Wealth and Influence
- David Ricardo was a hugely successful stockbroker and politician, richer than the fictional Mr. Darcy.
- He was Adam Smith's only rival in founding economics, pioneering the use of abstract models in economics.
Flaws in Comparative Advantage Model
- Ricardo's comparative advantage theory claims trade is always mutually beneficial even if one country is less efficient overall.
- Real-world trade between England and Portugal was unequal, sustained by exploitative colonialism and slavery hidden behind the theoretical model.
Naive Globalization Beliefs
- The 1990s belief that globalization would benefit all countries was naive and ignored real losers.
- Ricardo's theory was used to silence critics by framing opposition as ignorance against 200 years of economic wisdom.
