A Critical Note on Ricardo's views on Absolute and Relative Value in terms of Labor Values

Abstract

This note examines Ricardo's views on absolute and relative value in terms of the labor theory of value. It discusses why Ricardo viewed the construction of a standard of value capable of measuring changes in the absolute value of commodities as critical to understanding the division of the national product among the main contending classes in a competitive capitalist economy. The paper also highlights the shortcomings of Ricardo's proposed standard measure of value – one that would challenge and confound him all his life.