Economics Make the World Go Round

Only available on StudyMode
  • Download(s) : 151
  • Published : December 13, 2011
Open Document
Text Preview
[pic] [pic] [pic]

Money Makes the World Go Round

By, Chris Jarrett
Period 3

Money makes the world go round. If you know how to deal with money, you’re probably better off than someone who doesn’t. There are three significantly influential economists that helped change the way we look and think about money and the economy; Adam Smith, John Keynes, and David Ricardo. These men all came up with economical theories that we still study today, including the Invisible Hand, Government Intervention, Theory of Rent, and various others.

Adam Smith who lived in Scotland during the 1700s thought of many different economical theories. One of them was the Invisible Hand. The Invisible Hand theory boils down to saying that the economy will adjust to the needs of buyers and sellers over time. “The theory of the Invisible Hand states that if each consumer is allowed to choose freely what to buy and each producer is allowed to choose freely what to sell and how to produce it, the market will settle on a product distribution and prices that are beneficial to all the individual members of a community, and hence to the community as a whole.” (Wikipedia). Adam Smith didn’t agree with government intervention. He thought that the government should not be involved in the economy system and that people should fend for themselves, kind of like they do today in Hong Kong. Adam Smith’s idea of self interest states that “in the act of observing others makes people aware of themselves and the morality of their own behavior.” (Wikipedia). In other words, that means that when people study and look at other people’s choices and actions, they are able to become more aware of themselves and make better choices. All in all, Adam Smith was an economist that had great ideas that are still being talked about today.

Another recognisible economist is John Keynes. While Adam Smith was against government intervention. Keynes was for it. He explains that without...
tracking img