Answer to Question #293380 in Macroeconomics for Ali

Question

What is the theory of Classical Economists?

Answer 1

What is the theory of Classical Economists?

This is a theory that was focused on economic growth and economic freedom.

This is a theory that was found in Britain between the 18^th and 19^th century. This a theory that helped most countries to move from monarch states to become democracies with self regulation.

A Scottish philosophy scholar Adam Smith alongside David Ricardo, John Stuart Mill and Jean Baptiste Say are credited for the enormous contribution in the development of classical economics.

They came up with theories on value, price, supply demand and distribution.

In 1776 Adam smith came up with a release “wealth of Nations” which covered a lot on classical economics .Which illustrated on division of labor, productivity and free markets.

The classical economists were pragmatic in nature. They preferred a loser market strategy known as laissez – faire or “let it be”. They discouraged monopoly market whereby advocating for forces of demand and supply to take place. They even referred it has “hidden hand” unlike other economists who came after them who were even advocating on government interference on the market.

The classical economists were not completely unified but they had common agenda at the end of the day.

The classical economists were closely associated with economic freedom and later even political freedoms on policies that most countries enjoy.