Published by: sadikshya
Published date: 02 Jul 2021
There is various Criticism of the Ricardian Theory of Rent as follows.
No original and indestructible power
Ricardo says that there is an original and indestructible power of the soil. It is not correct. In these days of nuclear physics, no power of soil remains indestructible.
The best of land is not cultivated first
Land cultivated firstly is not necessarily superior land but rather easily accessible.
Neglects of a scarcity of rent
Ricardo rent arises on account of the fact that some land is superior and another inferior. The modern economist points out that there is no cause of land, rent will arise even all land is superior or great. Rent arises because the production of land is scarce in relation to its demand.
No marginal land
Marginal land is not necessary for the land at the margin of cultivation. It is so because it is not always the least fertile land that is the first to go out of cultivation if the supply of a commodity is to be reduced.
A narrow concept of rent
Ricardo assumed that rent earned by soil only. But land means not only soil it means all natural resources more ever modern economists have proved that rent can be earned by any factor of production which supplies in inelastic.
The wrong assumption of perfect competition
Ricardo assumes that rent is earned in a perfect competition condition. But perfect competition is not applicable in real economics. It is a theoretical concept only.