Classical and Neoclassical Economists Adam Smith and...

In order to understand how economics really work in today’s age we must think about how those economic ideas, revolutionary theories of many economists, that helped to shape the economic structure as we know it now, through many individuals and school of economic though that has existed through the ages. These schools are â€Å"the mercantilists, the physiocrats, the classical economists, Marxian economics, the neoclassical economists and the monetarist economics. For this essay I will only refer to the classical economists and the neoclassical economists. The two most influential economists that helped to shape our economy with their thoughts and theories that are still used in modern economy are Adam Smith a classical economist and John†¦show more content†¦The classical economists were mostly English economists in the 18th and 19th century and they were the first real economists. One of the most famous classical economist is Adam Smith. Adam Smith was Scottish born in 1723 and died in 1790. He was the most influential economist and it could be said that he is the father if classical economics. Adam Smith had developed many economic theories that are still used to this day, many of his books had made a great impact on the development of economic thought. The main publications that Adam Smith had written are Theory of Moral Sentiments and An Inquiry into the Nature and Causes of the Wealth of Nations, both are of great importance. Most of his influential theories can be found in the â€Å"Wealth of Nations†. Adam Smith was known for advocating the laissez-faire . One of the main theory that Adam Smith had come up with is whats called â€Å" the power of invisible hand of free enterprise†. This theory suggest that by acting in our self-interest, we help other through invisible hand, therefore you as well as the society benefit from self-interest. An example of that could be, if an person set up a company to make as much profit for himself as possible, he will also create employment for other people, therefore both parties benefit though the use of â€Å"invisible hand†.Show MoreRelatedThe Keynesian Era During The Middle Of The Nineteenth Century1720 Words   |  7 PagesBefore the â€Å"Keynesian† era in the middle of the nineteenth century, economists Adam Smith, David Ricardo, Thomas Mathus, and John Stuart Mill all shared somewhat similar economic views of the world. Some of the main concepts covered during this time included the division of labor, theories of rent, value, and distribution, theories of market â€Å"g luts† and population, and opportunity cost, competition, and trade. 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