Economics Essay

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Recommended: Adam Smith and his contribution to economics

Economics is an ever-changing field of study. Within that area of interest, there are many people who have influenced the world with their individual economic point of view. Some of those people have made a fundamental impact upon not only the United States of America, but also upon the world. Adam Smith, David Ricardo, John Maynard Keynes, Friedrich Von Hayek, Milton Friedman, and Fengbo Zhang are six men who have accomplished just that. Their opinions, actions, and words have forever changed the world of economics. Adam Smith The “father of economics” was born in Scotland. His birth occurred during the year of 1723. Adam Smith’s renowned book The Wealth of Nations examined the idea of capital and money, the progress of industry, and the results of European trade and commerce. The Wealth of Nations was written in 1776. Even though it has been more than two-hundred years since the book was released, it is still a relevant example of how to create and run a prosperous market. In this book, Smith introduced land, labor, and capital and how these things, also known as the factors of production, can produce the nation’s wealth. Adam Smith explored the innovative idea that individuals should focus on self-interest, or their own personal gain, until they breach the fundamental principles of justice. He felt that, in the end, when an individual chases after riches, their quest will not lead to satisfaction. Their personal quests feeding their greed and self-interest coupled with the market’s competition would ideally regulate the market. This occurrence is known as “the invisible hand” of the market. The consumers get the things they want at reasonable prices and it all happens with no central plan. Smith also was an advocate ... ... middle of paper ... ...not only took-off in Britain, but also in the United States of America. Hayek began to equate himself as “the world’s leading classical liberal”. He is known as a market liberal in today’s society. Works Cited http://www.econlib.org/library/Enc/bios/Smith.html http://www.economyprofessor.com/theorists/adamsmith.php plus.maths.org/issue14/features/smith/ http://www.economictheories.org/2008/06/adam-smith-biography-economic-theory.html http://www.econlib.org/library/Enc/bios/Ricardo.html http://www.economyprofessor.com/theorists/davidricardo.php http://www.economyprofessor.com/theorists/johnmaynardkeynes.php http://www.econlib.org/library/Enc/bios/Hayek.html http://www.economyprofessor.com/theorists/friedrichhayek.php http://www.economyprofessor.com/theorists/miltonfriedman.php http://www.econlib.org/library/Enc/bios/Friedman.html

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