Essays Keynes-Versus-Friedman
Essay no 3
Subject: Essay on key points of Adam Smith, David Ricardo and John Stuart Mill
Instructor: Prof. Dr. Juan Carlos Cachanosky
Student: Nevila Mehmetaj, Master in Management and Finance (MMF) Date September 3, 2010
The classical writers of the eighteen and nineteen century when offering definitions of their science expressed themselves about the nature of the economic in two distinct ways. They could define the subject known as political economy. Or having defined the political economy as the science of wealth, they could proceed to set forth the nature of that wealth with which it was maintained that economics is concerned. (Israel M. Kirzner, The Economic Point of View, p 13). The earliest classical economist adopted the description of the economic side of affairs in terms of wealth, but developments narrowed down the concept of wealth to the idea of material wealth of mankind. The attitude toward the utility of economic inquiries in elevation of wealth became an object of scientific study. Investigations that aims finding the means of enriching people and the sovereign; discovering laws of governing and to make the nation wealthy. From the beginning alternative suggestions were made by the economists themselves about what should and what should not be included under the heading of wealth.
Adam Smith in “An Inquiry into the Nature and Causes of the Wealth of Nations”, 1776, explains that the free market, while appearing chaotic and unrestrained, is actually guided to produce the right amount and variety of goods by a so-called “invisible hand”. He argued that self-interested competition in the free market would tend to benefit society as a whole by keeping prices low, while still building in an incentive for a wide variety of goods and services. An often-quoted passage from The Wealth of Nations is: "It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own
Subject: Essay on key points of Adam Smith, David Ricardo and John Stuart Mill
Instructor: Prof. Dr. Juan Carlos Cachanosky
Student: Nevila Mehmetaj, Master in Management and Finance (MMF) Date September 3, 2010
The classical writers of the eighteen and nineteen century when offering definitions of their science expressed themselves about the nature of the economic in two distinct ways. They could define the subject known as political economy. Or having defined the political economy as the science of wealth, they could proceed to set forth the nature of that wealth with which it was maintained that economics is concerned. (Israel M. Kirzner, The Economic Point of View, p 13). The earliest classical economist adopted the description of the economic side of affairs in terms of wealth, but developments narrowed down the concept of wealth to the idea of material wealth of mankind. The attitude toward the utility of economic inquiries in elevation of wealth became an object of scientific study. Investigations that aims finding the means of enriching people and the sovereign; discovering laws of governing and to make the nation wealthy. From the beginning alternative suggestions were made by the economists themselves about what should and what should not be included under the heading of wealth.
Adam Smith in “An Inquiry into the Nature and Causes of the Wealth of Nations”, 1776, explains that the free market, while appearing chaotic and unrestrained, is actually guided to produce the right amount and variety of goods by a so-called “invisible hand”. He argued that self-interested competition in the free market would tend to benefit society as a whole by keeping prices low, while still building in an incentive for a wide variety of goods and services. An often-quoted passage from The Wealth of Nations is: "It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own