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Classical Economist: Adam Smith (1723 - 1790)
Classical Economist: Adam Smith (1723 - 1790)
CLASSICAL ECONOMIST
Adam Smiths Theory of Development
Adam Smith known as father of Economics
Smith Abbreviated the Theories of His predecessors and handled it
down as a Guide to the coming Generations.
Adam Smith exposed all his ideas in his wealth of Nations.
This book explained a theory of Economic Development.
Wealth of Nations was a Turning Point
& A Beginning of all other Economic Theories &
Scientific
in approach
Natural Law
Adam smith proposed a natural law in Economic Affairs
If individuals are Left Free to pursue Economic Activity
They will maximize the output to the best of ability.
If individuals are Left Free to pursue Economic Activity
They will maximize the output to the best of ability.
Freedom of Action beings out the Best of Individual which increases the
Sentrys wealth & progress.
Adam Smith advocated free trading &
Policy of laissez Faire in Economic Affairs.
Smith opines that Natural Laws are Superior to Statutory law & man
made law.
For smith Natural law is just and moral.
Nature teaches man morality & Honesty
This has favorable effects of Economic Progress
Laissez Faire
Adam smiths Principle of Laissez faire
Increase of specialization of
Workers
Invention of better
manliness and equipment
Unchanged population
Subsistence wage
Improved
technology
Division of
labour
Expansion of
market