Classical economics was widely considered to be founded by Adam Smith in the late 18th century, in his book The Wealth of Nations. (Classical Economics) Adam Smith was a Scottish economist and moral philosopher, The Wealth of Nations was his magnum opus, it laid the foundation of classical economics. The book was a collection of how a nation accumulates wealth; it focused on free markets, the division of labour, and productivity. (The Wealth of Nations) David Ricardo, one of the most influential classical economist in history, was a British businessman and economist. He believed in the concept of comparative advantage, the idea of nations to specialize in specific industries and trade with other nations for products not produced nationally.
What were the contributing factors to President Bill Clinton’s Economic Legacy? By: Crystal Topor Principles of Economics Bus 221 Mr. Michael Belleman February 21, 2011 Abstract America’s 42nd President of the United States, William Jefferson Clinton, is likely to be remembered for a long-running business cycle expansion and booming economy during his two terms in office. It is largely debated as to whether or not President Clinton was responsible for the Economic upswing that occurred during his Presidency. Many observers credit Alan Greenspan, the Fed chief, with the careful management of the economy, rather than President Clinton. Although Mr. Clinton’s presidency was marred with controversy and scandal, one thing remains clear,
Outline and evaluate one sociological perspective. Marxism is a key sociological perspective and is referred to as one of Sociology's grand theories. It is a structural theory and is the most influential and widely known version of conflict theory, focusing on the conflicts of social groups within society. Many critics of Marxism focus on the fact that some of Marx's more startling predictions have not yet come true, thus, people are quick to judge his sociological perspective and write it off altogether, I hope to address this and conclude that, in fact, Marxism is still an adaptable and highly influential sociological theory. Karl Marx, born 1818, was alive during a time which saw the biggest period of change in Britain in modern times, a time of Industrialisation.
Stiglitz helped to create a new branch of economics, “The Economics of Information,” exploring the consequences of information asymmetries and pioneering such pivotal concepts as adverse selection and moral hazard, which have now become standard tools not only for theorists, but of policy analysts (Stiglitz J. E., Brief Biography of Joseph E. Stiglitz, 2012). He received the John Bates Clark award in 1979, awarded biennially by the American Economic Association to the economist under the age of 40 who has made the most significant contribution to the field. In 2011, Time named Joseph E. Stiglitz one of the 100 most influential people in the world. Joseph E. Stiglitz is currently a university professor at Columbia University. He is also the Co-Founder and Co-President of the Initiative for Policy Dialogue at Columbia University, and Co-Chair, Columbia University Committee on Global Thought.
On another note, something happened in our economy; between mortgage crises, failing bank assets, soaring unemployment rates, as well as the supply and demand, our nation became affected. This eventually led the U.S. Congress to pass the $700 billion “bailout” or “rescue plan”, to free the nation’s financial sector. However, has this plan altered the economic principles that were laid down over 200 years ago? During the late 1700’s, Adam Smith stated in his publication, An Inquiry into the Nature & Causes of the Wealth of Nations, “Every individual is continually exerting himself to find out the most advantageous employment for whatever capital he can command” (Mason and Rauchet 585). Evidently Smith is defining Free Market, by
How successful were successive German Chancellors in protecting the position of the Second Reich's ruling elite? Germany's ruling elite were made up primarily of Prussians, land owning aristocrats or high ranking military leaders. It also consisted of leading industrialists and the judiciary. However, their position as the ruling elite was under threat. Although the industrial revolution had a huge positive impact on German economy, it also lead to a rise in socialism which meant the emergence of pressure groups, such as the Nationalist pressure groups and the Economic pressure groups.
The scientific basis of the golden rule is in the mutuality of gains from trade, in the demand, generated by the engines of supply, in the expanded opportunity created by growth, in the usual and still growing economic futility of war (Gilder, 9). The author discusses that Adam Smith, the founding father of Scientific Management, wrote in his book The Wealth of Nations, that the productive powers were very important to the rank of the people. However, Smith’s followers beginning with David Ricardo became engrossed with statistics and distributions. “This mode of thinking, prominent in foundation-funded reports, best selling economics texts, newspaper columns, and political platforms, is harmless enough on the surface. But its deeper effect is to challenge the golden rule of capitalism, to pervert the relation between rich and poor, and to depict the system as “a zero-sum game” in which every gain for someone implies a loss for someone else, and wealth is seen once again to create poverty” (Gilder, 10).
The Great Depression and the New Deal The New Deal covered many aspects of America during the economy because the effect of it happened like a chain reaction. Franklin D. Roosevelt really made a big difference when it came to America. FDR didn’t just make one part of America better; he made sure that everyone, no matter the age or gender, was taken care of. This thoughtful and strategic move made by FDR is the reason why he has been nominated as one of our best presidents in office. The new Deals can be put into categories because, like I said before, it helped many parts of America during the Depression.
When it comes to economics, Adam Smith and David Ricardo were two of the most influential writers in history. They both are credited with publishing the basic theories on why nations should trade openly with each other and abandon any mercantilism doctrine they might hold. The theories of these two men were paramount in kick-starting the system of international trading we use today. Adam Smith In 1776, Adam Smith’s published his most important book An Inquiry into the Nature and Causes of the Wealth of Nations, more commonly known as “The Wealth of Nations.” In this document Smith was credited with being the first to accurately describe capitalism. However, at the time, the term capitalism had not yet been created, and it was referred to by Smith as “a system of perfect liberty.” In addition to capitalism, Smith also outlined the theory of Absolute Advantage in “The Wealth of Nations.” Simply put, this theory states that a nation should concentrate its resources on the commodities that it can produce more efficiently than any other country.
But even Adam Smith, the famous economist who advocated the division of labor in society, admitted that the system had a major drawback: Today even college education, which used to aim to produce versatile professionals, is specialized. This has been the case for a long time; it has been a major social trend since the end of World War II. The expansion of the American university system, and more precisely, the growth of graduate certification, is a major factor here. Consider a B.A. student who shows promise in historical studies.