Critically examine the contributions of Adam Smith and John Maynard Keynes and critically examine how they have influenced current management practices in the filed of economics

The purpose of this essay is to analyse and discuss how economists Adam Smith and John Maynard Keynes contributed to current management practices and more specifically how they influenced the field of economics. Through critical analysis the theories of Adam Smith and John Maynard Keynes will be explored. Smith contributions from division of labour and his ability to shift a mercantilist society to one of capitalism through his works in his “Wealth of nations report” will be critically analysed as to determine both their relevance to today and the influence that they have had. Similarly Keynes works in Keynesian economics and his theories that helped to develop the economy in its most prosperous time will be critically analysed to determine their influence and relevancy today. Although very distant in their theories and time both men have played key roles in the development of economics whilst in turn influencing current management practices. Both men were able to change and introduce new philosophies while reacting to the circumstances of their time, whilst creating a legacy through their work that is still relevant in today’s vastly different circumstances and society.

Scottish economist Adam Smith born 1723 is responsible for the initial development of economics in the eighteenth century and provided the framework for how we approach economic issues today. Smith was an “advocate for a free market society where international trade through both imports and exports where at a premium” (Forman-Barzilai, 2011). Smith was able “to radically shift from the mercantilist views of his time to a more contemporary philosophy” (Forman-Barzilai, 2011) of capitalism, which as a society we still follow today.

Smith was so influential as to completely change our “economic philosophy” in the 1700’s to one that we have yet to improve on, illustrating the immense influence of Smith on today’s management practices. Smith was able to achieve this accomplishment by changing the

References: 1) Adam Smith (1776) An Inquiry into the Nature and Causes of the Wealth of Nations, England 2) Amartya Sen (2009) Adam Smiths market never stood alone: The Financial Times. 3) Amartya Sen (2009) Capitalism Beyond the Crisis 4) 4) Edward Kaplan (2010) John Maynard Keynes – By Paul Davidson Kaplan, Edward S 5) Forman Barzilai (2011) The Adam Smith Review, 6 edn. Hoboken: Hoboken : Taylor & Francis 2011. 8) Ludwig von mises (1953) Introduction to the Henry Regnery Co. edition of Adam Smith, An Inquiry into the Nature and Causes of The Wealth of Nations: selections 9) Mark Blaug (2010) John Maynard Keynes – Life – Ideas – Legacy: University Of Cambridge 10) Noam Chomsky (1995) an exert Class Warfare, pp. 19-23, 27-31 11) Robert Skidelsky (2005) Keynes