Adam Smith And John Maynard Keynes Summary

Milton Friedman and John Keynes are two world renowned economist, with many similar and contrasting views that have helped set the foundation of our economy. Friedman 's ideology on subjects such as the Monetary Policy, Gold Standard, and the Theory of the consumption function are what made him a extremely impactful economist. Keynes has made his impact on the modern day world as well in many aspects. Both of these economists have helped pave the way to a better, more efficient economy.

John Maynard Keynes fostered a school of thought that came to be known after him,

Among economists, it is said Adam Smith is one of the main contributors to modern free market economics. His thoughts attacked mercantilism which was the prevalent form of government at the time. His works provided systematic rationales in the subjects of capitalism, free markets, and limited government intervention. His most popular books changed history because without them, many of these thoughts and ideas would not be so prevalent. Smith is regarded and cited as the father of modern economics. With this said, not all of Smith’s ideas were in agreement with laissez-faire. Although Adam Smith pioneered many ideas on modern free market economics, Smith cannot be depicted as a defender of laissez-faire because of his ideas on

Have you ever wondered how the United States economy came to be? Why do people open certain businesses? Why do they sell certain products? How do we come up with the prices for these products? These are pretty big questions! Adam Smith, an influential economist of the 1700s, is responsible for at least some of the answers to these questions. He inspired much of our country's current economic policies when he wrote the book The Wealth of Nations in 1776.

John Maynard Keynes was born in 5th of June 1883 and died at the age of 62 on the 21st of April 1946. His work in economics and his ideas fundamentally changed the practice and theory of modern macroeconomics as well as the economic policies of governments. Keynes is very well known for his exceptional work on the implications and causes of the business cycles and is also regarded as the founder of modern macroeconomics. The school of thought also known as ‘Keynesian economics’ as well as the various offshoots have his ideas as foundation.

Adam Smith born the year 1723 was thought to be one of the world’s greatest economists. In Fact he was known as the father of economy. He was also known by the way he thought and the way he wrote about the country's economy and in this paper I will explain the way he described and the way he thought of the economy and why his thoughts have carried on for the last two hundred years.

Adam Smith was born in Kirkcaldy, Scotland in the year 1923, and died in the year 1790 at the age of 67 (Stewart, 1861). His exact date of birth is unknown but was baptized on 5th June 1723. His father was a prosecutor, advocate, and solicitor but passed on two months after his birth, leaving his mother to bring him up. His mother, Margaret Douglas, played a great role in his upbringing, especially in education. He joined the Burgh school where he learned history, writing, Latin and mathematics. He went to the University of Glasgow at the age of 14 where he studied moral philosophy; he also established his passion for reason, free speech and liberty (Stewart, 1861). In 1740, he entered Balliol College, Oxford where he undertook his postgraduate studies and became the first student to gain from the scholarship of John Snell. Conversely, his studies at Balliol College, Oxford did not contribute a lot towards his lifework as compared to his studies at Glasgow University (Stewart, 1861).

Since the early days of the United States, the Founding Fathers and other brilliant minds sought ways to understand and make sense of the inner workings of society and the economic market. Out of the many thinkers and developers of that time period, perhaps none made so great an impact on American society as the Scottish contemporary philosopher and political economist, Adam Smith—who is most known for his influential work, An Inquiry into the Nature and Causes of the Wealth of Nations, By the early nineteenth century, other streams of economic theory emerged from various individuals who were also influenced by the ideas of Smith. Some of these individuals included David Ricardo, Karl Marx and later John Maynard Keynes and Milton Friedman—each of whom contributed their own ideas on economic activity. However, it was Smith’s ideas on capitalism and his laissez-faire approach to free markets that have transcended other economic theories and continue to impact American economic thought to this day.

- Control and regulate the various economic conditions such as inflation through the management and

Compare and contrast the ideas of Adam Smith and John Maynard Keynes regarding capitalism/economic systems. (5 marks)

Why is the work of Adam Smith considered so crucial in the development of economic thought?

Adam Smith is considered as one of the most influential economists in the 18th century. Although his theories have been criticized by several socialist economists, however, his idea of capitalism still has great impact to the rest of the economists during classical, neo classical periods and the structure of today’s economy. Even the former Prime Minister of Britain, Margaret Thatcher had praised on Smith’s contribution on today’s capitalism market. She commented “Adam Smith, in fact, heralded the end of the strait-jacket of feudalism and released all the innate energy of private initiative and enterprise which enable wealth to be created on a scale never before contemplated” (Copley and Sutherland 1995, 2). Smith is also being recognized

developed his theory based on the Adam Smith’s theory. Keynes did not entirely disagree with

According to Adam Smith, money is an instrument for measurement of value and for the circulation of wealth. A true wealth of nation consists “not only in its gold and silver only, but in its lands, houses, and

Keynes, one of the bastions of classical political economy of social democracy, was born in 1883 in Cambridge. After studying at Eton and graduating as an economist at Cambridge University, he went to work in the British India Office. Contact with the performance of the Indian economy was the basis of his first work, the money and finance in India, published in 1913 and well known then. During the course of World War I (1914-1918) worked for the Treasury, and after completion of this represented England at the Paris Conference in 1919 she railed fiercely against financial compensation imposed on Germany by the Treaty of Versailles, and so forth in The Economic consequences of the Peace (1919), a work in which he warned of the risk that Germany took refuge in militarism and economic nationalism to avoid crisis. During the 20s, Keynes set out to make money by speculating in currencies, teaching at Cambridge and write three works: the Treaty of probabilities, a book about mathematics and the Treaty of money. In 1936 published what would be his most important work, The General Theory of Employment, Interest and Money. It sets out the broad outlines of a new economic policy that constitute the mainstay of social democratic premises, and in this work we will deal later. Shortly after the entry of Britain in World War II came to light your work How to pay for the war