Analysis of "New Ideas from Dead Economists" Essay

Economics is the study of choice and the consequences that come from said choices. Ever since the 18th century, economists have continued to argue about theories that could improve society to the greatest extent. Two great economists, Adam Smith and Karl Marx, proved to develop opposing ideologies that would soon become the foundation of the two most popular political philosophies. Even though they voiced opposing views, Smith and Marx have truly made the greatest impact on contemporary economic theory in the United States because without them, our capitalist economy would not be what it is today.

Even though he shares some of the same ideas as the three men, Adam Smith’s ideas are most similar to John Locke. Both Locke and Smith believed people can be trusted and let people do their own things, without having the government interfere. This concept is called by Adam Smith, laissez faire. Smith thought that this would help protect society, administer justice, and provide public works. Even though Smith’s philosophies were the same on government as Locke, his views on economy were a lot like Marx’s. Both Smith and Marx believed that the economy had a major role in government and that it is important to industrialize. He believed that people should seek out wherever the demand for goods and services are to have an effective economy. Also, Adam Smith’s concept on a particular leader keeping everything going and orderly was a lot like Thomas Hobbes idea. They both believed that there needs to be someone watching out for the people just in a case of emergency, when foreigners attack. Even though Smith did not have the same exact views as Locke, Marx or Hobbes, Smith’s ideas were along the lines of these

In 1798 utilitarian Thomas Malthus published An Essay on the Principle of Population as an argument against an utopian society based on social and economic equality. Malthus believed that if the human population is left unchecked then the population would outgrow the resources necessary to maintain the population. Malthus’s argued that the population will continue to grow and the burden will unavoidably put on the poor population. However, the inequality of population would be a good thing in terms of controlling the population.

In order to fully understand what economics is, t. For example, economics is about the money that we make and what we choose to do with it s, and it’s not an economist’s job to tell people what stocks and bonds they should be investing in. “ The Economist deal with politics and current events and are not specifically economic-related, despite the title of the publication. But there is a subfield of economics known as political economy”

Adam Smith was a Scottish political economist and moral philosopher, who studied moral philosophy at Oxford University and University of Glasgow. Smith is considered by many to be the founding father of economics and the first free-market capitalist. In fact, in many ways his philosophies and theories have helped shape our country and our economy into what it is today. Smith introduced us to the invisible hand theory which referred to the free markets. The invisible hand theory stated that ultimately when people were left able to pursue their best interests, meaning that they were able to pursue work that made them happy and that enabled them to command the highest wage for themselves or when entrepreneurs were able to provide good

Philosophe Adam Smith is known by many as the father of economics. His philosophy revolved around whether a closed or open market would be the most successful in society. He discusses this

During the Enlightenment, modern thinkers called philosophes introduced new ideas surrounding society. Despite each philosophe having individual beliefs, each one’s centered around equality for each human individual. These revolutionary thinkers transformed views on society and government. John Locke, an influential philosopher who lived during the English Civil War and Glorious Revolution, wrote about human equality and how it pertained to the government. “Second Treatise on Civil Government,” his book discussing political philosophy was published in 1690.

Thomas Malthus believed that natural rates in reproduction, when not checked, would lead to an increase of population. He also went on to state that along with the natural rate of population growth that the rate of food production would only increase at about half of that rate. If an attempt wasn’t made to keep the population under control then overt actions would be required to manipulate food production or order to stave off starvation. Malthus had two ideas that he believed would

Malthus was an economic pessimist to those who disagreed with him and a realist to his followers. He viewed poverty as something that was inevitable because, "If the only check to population is misery, the result of any improvement is ultimately to enable a larger population than before to live in misery, so that resource-improvement actually increases the sum of misery and that betterment of the lot of mankind is impossible without stern limits on reproduction." This means that there is overpopulation, and the natural check of misery (poverty) is coming into effect in order to balance out overpopulation. However, by trying to help poverty, we are (according to Malthus) making the situation worse. In the short run, there seems to be an improvement because those poor people are better off and can do well. This situation would lead to a larger population than before, and therefore would lead to a greater number of people becoming impoverished. He therefore shunned charities and proposed that by leaving poverty alone, and by moral restraint and vice (contraception and population control); the situation would take care of itself. "If the only check to population is misery, the population will grow until it is miserable enough to check its growth."

Adam Smith had a very good understanding of the world he lived in when it came to the market. Adam Smith was, “the man who made England, and then the whole Western world, understand just how the market kept society together.” (Heilbroner, 1995, p. 72 ) There were things after him that he did not predict happening as shown with him as, “the economist of preindustrial capitalism; he did not live to see the market system threatened by enormous enterprises.” (Heilbroner, 1995, p. 71) The industrial revolution was also something he did not see coming. There were attempts from people to form organizations like work forces and corporate business which he did not foresee. His views were more, “of a static community; it grows but it never matures.”

The idea of Adam Smith, who wrote The Wealth of Nations, started the economics. Smith believes that all humans desire to live better than they normally do, and that self-interest powerfully motivates the society to increase the wealth of nations. In addition, “invisible hand”, the symbol of the free market, let people take rare resources and make them into something more valuable according to

Smith argued for encouragement free markets and unrestricted economic interchange within and between nations. He argues that more can be produced in a day, and he applied the same principle to international trade. Each nation needs to produce what is profitable to them. Using this method everybody will gain. While Smiths advocacy of the free market contradicted European policies that were based on monopoly and mercantilism, Smith was using reason to challenge existing assumptions. He held the more optimistic view that freer international trade would lead to more wealth for us all. Smith was also against slavery. He felt that labor contracts negotiated in a free market lead to more efficient production. Smith believed the invisible hand of the market functioned like the laws of gravitational attraction, maintaining balance and harmony in economic affairs. He also concurred with Locke's belief that protection of private property was a core function of

Adam Smith’s powerful and stadial view of European commercial development stimulated the thinking of classical economists. John Ramsay

Adam Smith, author of The Wealth of Nations, shows support for free trade and emphasises it as a trade policy which ought to be adopted. Krugman and Obstfeld back Smith's support by stating that the efficiency of trade is increased by free trade and accumulates the national income of countries. Free trade is a theory which suggests that each nation benefits in specialising in an economic activity from which it gains absolute advantage, enjoying absolute superiority over other nations in a specif economical activity (Peng). With free trade follows opportunity, replacing regulation and growth of economic activity. (Rugmann and Collinson).

Other important classical economists include David Ricardo who introduced and developed the concepts of comparative advantage and the