Answer to Question #220328 in Macroeconomics for Nana k

Question

Why were the classical economists after Adam Smith pessimistic about the growth and
development process?

Answer 1

The classical economists after Adam Smith were pessimistic about the growth and development process because the classical economist believes that the major driver of the economic growth are the accumulation of capital and the gains from trade. According to them the process of re investment of the profits , that are earned act as the mechanism for the growth. The Adam Smith and the classical economist both differ greatly in the notion of the growth and development and hence the classical economist were pessimistic about the growth and development process.