The WORLD is defying David Ricardo...

According to Ricardo explaining income distribution is the objective of Economics and he concluded that as the time will pass agriculturalists will earn more than everybody else because population will grow (as the time will pass) and because land is scarce, therefore prices of food will go up partly due to high demand and partly due to limited supply… But, even after so much time passed this trend is not observable in the real life… and other things have taken precedence (instead of food) in terms of utility, not doubt utility of money is too high… The reverse trend in the agricultural income-pattern is explained by the “Water Diamond Paradox” which says that prices are sometimes not set according to its utility and among the examples are prices of water and diamond… Utility of diamond as compared to the water is very low, but high on prices… So here the relationship that utility decides prices as taught in grad school does not sound true… Utility of diamond relative to water is too low and the price of diamond relative to water is too high… In our example if we replace water with food the conclusion does not change altogether… Then why the farmers the world-over are committing suicides… According to Ricardo they should live in leisure at the expense of others but the scene is just the opposite… Nevertheless, the water-diamond is a right observation… The most important thing is that the inducement to invest in agricultural which has a direct correlation with prices is missing because the government decides the prices and not the market… More prices will motivate farmers to produce more. The inflation in the food category in INDIA explains a massive investment in agriculture and especially in the horticulture or vegetables… High prices are good signal for investment but due to high land prices a common man is only in a position of selling agricultural land and not buying it… The income tax exemption on the agricultural income (I think) is a great incentive to invest in agriculture and the government should also reduce taxes on lands that are bought for agricultural purposes… That would be a great thrust to agriculture… A straight 30% reduction in taxes on agricultural income is a great investment because no investment, except in stock-markets, pays 30%... Investment in agriculture is a great opportunity… The government can not compress prices for too long because the would harbor unrest in the peasantry… If they understand… Higher prices in the future is a great signal for investment… Profitable…