Ricardo only pointed out to the fact that regulation of rent and landowners to be the primary cause of economic issue in the society. Ricardo did not factor in the notions of racism but was against the rising rent cost in the societies.
Marx ideology stems from Ricardo. He states that certain people esp. the proletariat class needs to be subdued in an effort to maintain constant source of cheap labour. There is a strong relationship between labour and race according to Marx (Hunt, 1993). This was the root of social divide in the society. Upper class or the bourgeois class wanted to maintain a proletariat class that was dependent on them for their means. In this situation it was easier to subdue the people from another ethnicity and oppress them to work for the capitalistic greed in the societies. Hence social exclusion is practiced as a tool to maintain control over some ethnicities. There is a need to analyze the roots of oppression in the society to understand the economic standpoint.
Economical theory from historical times to the current times has some fundamental similarities. Certain facets of economics of labour have remained the same. Labourers are paid by the owners based on the supply and demand of resources, political ideologies and rhetoric existing in the societies. From this the pattern of wages for the employees is explained in different theories (Kuper, 2013).
Antagonism and oppression against certain races had caused the individual ethnicities to lack technical knowledge and be disproportionately scattered in the societies. This causes them to be marginalized by the some ethnicities like the Europeans. This causes them to pay lesser wages to the labour in the society. They follow Smith and Ricardo’s capitalistic views regarding the wages. Social exclusion and racial oppression of Marxist philosophies was also prevailing in the societies. This is found to have traces even in the modern times.
Wage is an important factor involved in the cost of production. In lieu of the ideologies of capitalism proposed by Smith and Ricardo, cost of production should be lowered. Increase in wages leads to increase in production. To ensure lower costs of wages, people chose to oppress certain ethnicities. They were slavery, social exclusion and oppression against the minority communities in the societies. Essentially the European White people controlled other ethnicities. Similar to the ideology of Marx, people were oppressed for the reason of commerce. Traces of this racism are seen in some parts of the spectrum even in the current times. This power is maintained to ensure that there is continual growth and progress in the individual economies.
From this it can be concluded that Smith, Ricardo’s capitalistic views were used to understand the impact of lowering wages for the owners. Owing to this the societies chose to marginalize, oppress and cause slavery to maintain lower wages in the society.