Meaning: David Ricardo, a prominent economist of the 18th and 19th centuries, made significant contributions to the field of political economy. The quote "If the quantity of labour realized in commodities, regulate their exchangeable value, every increase of the quantity of labour must augment the value of that commodity on which it is exercised, as every diminution must lower it" reflects Ricardo's views on the relationship between labor and the exchange value of commodities.

Ricardo's quote is rooted in his labor theory of value, which posits that the value of a commodity is determined by the amount of labor required for its production. According to this theory, the more labor that is invested in the production of a commodity, the higher its exchange value will be. Conversely, a reduction in the amount of labor required for production will lead to a decrease in the exchange value of the commodity.

This concept is central to Ricardo's broader economic framework, which emphasizes the role of labor as a primary determinant of value in a market economy. In Ricardo's view, the exchange value of commodities is ultimately determined by the quantity of labor embodied in them. This perspective contrasts with other theories of value, such as the subjective theory of value, which emphasizes the role of consumer preferences and utility in determining the value of goods and services.

Ricardo's labor theory of value has been a subject of debate and criticism among economists. While some scholars have lauded its emphasis on the role of labor in determining value, others have questioned its applicability to modern economies and its ability to account for the complexities of market dynamics.

One of the key implications of Ricardo's quote is that changes in the amount of labor required for the production of a commodity will directly impact its exchange value. This implies that technological advancements or changes in production methods that reduce the amount of labor needed to produce a good should, in theory, lead to a decrease in its exchange value. Conversely, an increase in the labor input required for production should lead to an increase in the exchange value of the commodity.

Ricardo's quote also underscores the significance of labor as a factor in shaping the distribution of wealth in a market economy. If labor is indeed the primary determinant of exchange value, then the rewards accruing to different participants in the production process, such as workers and capitalists, will be influenced by the amount of labor they contribute to the production of goods and services.

It is important to note that while Ricardo's labor theory of value provides valuable insights into the relationship between labor and exchange value, it is not without its limitations. Critics have pointed out that the theory may overlook the role of factors such as supply and demand, technological innovation, and market competition in shaping the value of commodities. Additionally, the theory's applicability to the modern globalized economy, with its complex supply chains and diverse production processes, has been called into question.

In conclusion, David Ricardo's quote encapsulates his labor theory of value, which posits that the quantity of labor involved in the production of commodities directly influences their exchange value. This perspective has been influential in shaping discussions on the role of labor in determining value and distribution in market economies, although it has also faced criticism and debate within the field of economics.