The Theory Of The Classical School

An increase or decrease in the unemployment rate can have a multiple effects on the Australian economy, both beneficial as well detrimental to the economic conditions and the societal outlook.

In 2011, the rate of unemployment is at 9%. Although there is a decline it has been rather slow. Financial analysts predict that unemployment rate would drop to 8%. Even for the people who still have their jobs the hours that they work have been reduced since then. With reduced hours the productivity of the workers would not be fully exploited which in the end, affects the economy. This is so because with a small fiscal base the economy has not been able to recover from recession fast enough. Although there have been positive growths in the employment rates these growths are barely enough. They do little to help in the dire situation. This only means that joblessness is something that the population would have learned to live with.

This also improves the distribution of income, a reduction in the unemployment rate with result in households yet having more spending power and yet encouraging more economic growth. An increase in employment will result in an improvement in the budget deficit as there will be a decrease in the demand for welfare benefits, thus improving the economy. The increase in the supply of goods and services (due to an increase in demand) is also expected to reduce demand pull inflation, as there is now less competition for few goods, lowering the prices to a healthy equilibrium. This can be shown in a demand and supply diagram.

Working off the last paragraph, less unemployment leads to a higher overall production of products, leading to a higher GDP. A higher GDP leads to a higher standard of living. Basically if everyone in an economy was working and being productive, the economy would start to flourish (Doc 2). But due to an increase in firings and unemployment, the cornucopia of the economy is struggling (Doc 3). The job market is suffering and business struggle to find workers (Doc 1). Workers are important to the economy, keeping it running successfully and completing the business

In order to discuss the statement in the title, I will first talk about J. M. Keynes and give some general information regarding his life and career. Following I will discuss about Keynes criticism of Say’s Law starting with Aggregate Demand and how consumption together with investment are in relation to income. Afterwards I will highlight the role of investment and what the policy implications are. For the final part of this essay I will conclude with some evidence to support the claims made.

During the Post Classical Era, from 600 CE to 1450 CE, new empires rose through the combination of aspects such as social structure and religion from the classical era and globalization as well as expansion of religious and technological ideas from the modern era in order to form the Post Classical Era. Trade took on new roles through connecting areas and spreading goods, ideas, and disease. Ideas that were often spread was religion, such as Islam and Buddhism, thus leading to global awareness and conflict. Though Post Classical Mesoamerica was not included in the global trade route linking Eurasia and Africa, Mesoamerica still enjoyed its own advances during this time period. Through the Post Classical Era, Mesoamerica continued to celebrate religion because of its combination with everyday life, however they began trading because of the introduction of conquest, and developed farming techniques that played roles in trade and religion.

In this paper I will be addressing and discussing the two schools of criminology, which respectively are the classical school and the positivist school. I will begin by comparing and contrasting the historical background of both schools using the founders of each school. I will then continue the paper by comparing their assumptions, their findings and their key policy implications. I will do this by explaining each school’s purpose and goal. I will then argue and explain how the classical school is respectively stronger than the positivist school for being straight forward, concise and unbiased.

Keynesians model says that economic cycles cannot be dealt with the use of monetary policy, The Classical model says the economics will trend to equilibrium by itself.

This paper is on the Classical School theory that emerged in the eighteenth century; two writes of this period were Cesare Beccaria and Jeremy Bentham. Among the major ideas that descend from this theory are the concepts of humans as free-willed, rational beings, utilitarianism (the greatest good for the greatest number), civil rights and due process of law, rules of evidence and testimony, determinate sentencing, and deterrence. The writes during this period examined not only human nature but also social conditions as well. The Classical School, gave us a humanistic conception of how law and criminal justice system should be constructed. Law was to protect the rights of both society and individual, and its chief purpose was to deter criminal behavior, the law emphasized moral responsibility and the duty of citizens to consider full the consequences of behavior before they acted. This thinking required humans possessing free will and a rations nature.

Structural unemployment may occur in the short term with the removal of trade barriers. This will have impact on large numbers of workers, as well as their families and local economies. In growth industries workers often will have difficulties to find employment.

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

The classical school is one of the economic thoughts; the key assumption of this school is that the market system is the most efficient system in the sense that the unencumbered market mechanism ensures the optimal allocation and utilisation of scarce resources. They also believed that “Supply creates its own demand.” (Taylor, 1984)In other words, in the process of producing output, businesses would also create enough income to ensure that all of the output will be sold. Another assumption is that the market system automatically restores economic equilibrium from any temporary shock, meaning government intervention is unnecessary. The second school of thought is the Keynesian school; the key assumptions of this school are that the market system is instinctively unstable in the sense that it falls to maintain economic equilibrium from time to time. Once disequilibrium occurs the market mechanism may not be able to restore equilibrium automatically, which could progressively lead to market failure or economic paralysis. Therefore the market mechanism may not be efficient and government intervention is most likely to occur in situations of market failure, for example the great depression or the 2007 and 2009 global crisis. (yin

This implies that all workers that desire jobs will have them, and those who are unemployed voluntarily choose to be so.

One of the most highly contested and controversial economic concepts is Say's law, or the law of markets, an economic theory associated with French economist and businessman Jean-Baptiste Say. The law itself is embedded in ambiguity, and is usually associated as being one of the underlying assumptions in classical economics. Say's law is frequently described as 'supply creates its own demand' which is a term that was made famous by John Maynard Keynes in his General Theory. This essay however, will use a

In economics, some classical liberals believe that ‘’an unfettered market’’ is the most efficient mechanism to satisfy human needs and channel resources to their most productive uses. The minimal government advocacy of an ‘’unregulated free market’’ is founded on an ‘’assumption about individuals being rational, self-interested and methodical in the pursuit of their goals. Adam Smith was not an advocate of pure capitalism. Adam Smith allowed for many exceptions to a strictly free-market economy. The classical liberals advocated policies to increase liberty and prosperity. They sought to empower the commercial class politically. They abolish royal charters, monopolies and the protectionist policies of mercantilism to encourage