Economic Philosophers

• Classical Liberalism: No government involvement. Nothing should be done by the government. Improvement will occur naturally.
• Adam Smith: Scottish Economist (1723-1790). Self-Interest and Competition work together as an invisible hand in a free market to provide jobs and better products. Invisible hand. Government should not run the economy. Critical of Mercantilism.
• Adam smith believed individuals work for their own self-interest in a free-market system. Stronger economy will benefit most people in society. Wrote the Wealth of nations in 1776. Ideases became the basis of capitalism, free market and laissez-faire economies.
• Key ideas from Adam Smith: Supply and demand should rule the prices of stocks. Greed is the "invisible hand". Market will self regulate as long as business and consumers act in self-interest. Consumers look for the best product at the lowest price. For a company to make a profit they have to offer the best product. Greed is good. Competition
• Invisible hand: Justification for self-interest as an economic motive
• Competition is important to avoid monopolies. WHen there is a monopoly on a product, the result is extremely high prices which are undesirable.
• Thomas Malthus (1766-1834): English economist. Wrote "An Essay on the Principle of Population". Population grows 2x and food grows 1x thus discrepancy between food production and population growth. Will become so large that it would lead to disasters and many would die. Malthusian Check. Neo Malthusianism. RIght Wing (Individualism)
• Malthusian Check: Lots of death, greater balance between food and population, by helping the poor, it leads to a larger population, that would mean a greater frequency of these checks.
• David Ricardo (1772-1823): Member of British Parliament. Classical LIberal economist. "Iron Law of Wages" Wages for factory workers should be set naturally using the law of supply and NOT set/aided by the government. Against minimum wages. Right Wing.