Você está na página 1de 24

Economic Theorists

Beyond Smith and Marx

Sources

Wiley Economics Focus

Father of Classical
Economics
Adam Smith -1723-1790
free markets provide
the greatest good to
the greatest number of
people.
invisible hand
Inquiry into the Nature
and Causes of the
Wealth of Nations
Theory of Moral
Sentiments

Classical Economists
David Ricardo
1772-1823

Labor theory of Value


Theory of rent
Comparative
advantage-free trade
The Principles of
Political Economy

By far the greatest part of those goods


which are the objects of desire, are
procured by labour; and they may be
multiplied, not in one country alone, but in
many, almost without any assignable limit,
if we are disposed to bestow the labour
necessary to obtain them.

Thomas Robert Malthus1766-1834


Food increases
arithmetically,
populations increase
geometrically
Populations studies
An Essay on
Population

While food production tends to increase arithmetically,


population tends to increase naturally at a (faster)
geometric rate, Malthus argued that it is no surprise that
people thus choose to reduce (or check) population
growth. People can increase food production, Malthus
thought, only by slow, difficult methods such as
reclaiming unused land or intensive farming; but they can
check population growth more effectively by marrying
late, using contraceptives, emigrating, or, in more
extreme circumstances, resorting to reduced health care,
tolerating vicious social diseases or impoverished living
conditions, warfare, or even infanticide. Malthus was
fascinated not with the inevitability of human demise, but
with why humans do not die off in the face of such
overwhelming odds.

Jean-Baptiste Say 1767-1832


Says Law

"production of commodities
creates, and is the one and
universal cause which creates, a
market for the commodities
produced."

It is worthwhile to remark that a product is no sooner


created than it, from that instant, affords a market for
other products to the full extent of its own value. When
the producer has put the finishing hand to his product, he
is most anxious to sell it immediately, lest its value
should diminish in his hands. Nor is he less anxious to
dispose of the money he may get for it; for the value of
money is also perishable. But the only way of getting rid
of money is in the purchase of some product or other.
Thus the mere circumstance of creation of one product
immediately opens a vent for other products. (J.B. Say,
1803

John Stuart Mill 1806-1873


Utilitarianism
opportunity cost,
comparative
advantage
On Liberty

Actions are right in proportion as they tend


to promote happiness; wrong as they tend
to produce the reverse of happiness. By
happiness is intended pleasure and the
absence of pain.
the sole end for which mankind are
warranted, individually or collectively, in
interfering with the liberty of action of any
of their number, is self-protection.

Industrial Revolution poses a challenge


to Classical Economics

Marginalists
In addition to the
costs of production
setting prices,
demand plays a role
supply and demand
models
marginal choices

Alfred Marshall (1842-1924)

Principles of Economics

Marxism
Karl Marx 1818-1883

capitalism will ultimately


destroy itself and be
succeeded by a world without
private property.

The Communist Manifesto


Das Kapital

F.A. Hayek (1899-1992)


Socialism will fail.
planners will never
have perfect info.
leads to totalitarianism

The Road to Serfdom


Austrian School

Great Depression is cataclysmic


for Classical Economics

John Maynard Keynes


General Theory of
Employment, Interest,
and Money
Recessions may not be
self-correcting
Government spending
can help to end a
recession
free markets cannot be
counted upon to provide
full employment

Keynesian Economics

Stagflation of the 1970s

Reaction to Keynesianism

Neoclassic Economics
invisible hand free markets will
always yield the best outcomes
monetarism
rational expectations theory
supply-side economics

Monetarism
return to free markets
emphasizes the role
of monetary policy
(how much money
supplied)

Chicago School
laissez-faire
deregulation

Milton Friedman 1912-2006

Rational Expectations Theory


the market's ability to buyers predictions
anticipate government
influence price
policy actions limits
efficient markets
their effectiveness.
random walk theory

Supply-side Economics
Back to Smiths ideal
of production
bettering society
Incentives to
producers to promote
the economy
changes in tax rates
exert an impact on
total output

Important Contemporary
Economists
Paul Krugman
Jeffrey Sachs
Thomas Sowell
heterodox economics

behavioral economics,
complexity economics,
evolutionary economics,
experimental economics,
neuroeconomics

blah, blah,
blah. . .

Você também pode gostar