How to Get the Best Help with Your Economics Assignment?
Economics is the study of how societies produce goods and services, and how they consume them. This science is an integral part of our everyday life and has impacted the world of finance in many vital ways. The creation of the field of economics is greatly credited to Adam Smith. It is said that he was inspired by French writers who also hated mercantilism. These writers were the first people to undertake a methodical study of how economies work. Adam Smith used many of their ideas to come up with how economies should work.
Smith said that competition should regulate itself. That the government should only take part in business through tariffs and taxes among others only to protect free market competition. Smith’s work has played a pivotal role in many economic theories today. This has earned him the name “the father of economics.”
Marx and Malthus: Dismal Science
Thomas Malthus work predicted that food supply will be outstripped by the growing populations. However, he was proved wrong by technological innovations which allowed production to keep pace with growth in population. Nonetheless, his work changed the focus of economics to scarcity and demand of things.
With the shift of the focus of economics to scarcity, Karl Marx declared factors of productions as the most important components of any economy.
John Maynard Keynes developed the theory of mixed economy. He was of the idea that since capitalist societies aren’t self-correcting, the government should take it as a chance to justify its existence.
Friedman was against the redundant controls that the government had imposed in the market. With the economy of the U.S.A maturing, he argued that rather than increasing gross domestic product to grow bigger, the government should instead focus on consuming less of the capital from the economy. If there is more capital in the market then the economy can do without any government interference.
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