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Classical School of Thought Timeline

Allison, Annelise, Madeline, and Maria

Classical Economics

Late 17th

Century

About

  • Classical economics followed Mercantilism with a strong shift in ideas of trade, labor, and capital

  • Began to flourish in the late 18th to early 19th centuries with notable figures such as Adam Smith, David Ricardo, and John Stewart Mill

  • Classical economics was said to have began with Smith's Wealth of Nations

  • Common themes included theories of:
  • Self-regulated market economies
  • Natural laws of production and exchange

Adam Smith

1723-1790

1723

About

  • Scottish economist, philosopher, and author

  • Known as the "father of economics" and the "father of capitalism"

  • In 1776, he released his best known piece of work, Wealth of Nations

Invisible Hand Theory

  • Introduced by Smith in his book Theory of Moral Sentiments

  • Describes the unintended benefits that a society faces based on individual, self-interested actions

1759

1776

Wealth of Nations

  • In this book, Smith states that the wealth of nations is defined by national income

  • Introduced many concepts and ideas supported by classical economists and still used in society today

  • Income was determined by labor and the use of capital
  • Smith focused on the idea of increased efficiency in levels of production based on division of labor
  • https://www.youtube.com/watch?v=whSP1jaqhz4

1760

The Industrial Revolution

About

1760-1840

About

  • The Industrial revolution began in 1760

  • Technological advances were made, like the use of iron, steel and new power sources like coal and steam power

  • This led to changes in production levels of goods, and therefore a significant change in the economy

  • Growth in production also led to growth in trade, raising new ideas for many classical economists
  • https://www.youtube.com/watch?v=3Efq-aNBkvc
  • The industrial revolution pushed society into a capitalistic system.

  • Before the industrial revolution Europe was in a feudalism society so the industrial revolution gave economist a chance to figure out the economy now that every individual sought out their own monetary gain.

  • The industrial revolution inspired Adam Smith to write his famous books and theories like the theory of labor.

  • With the industrial revolution more factories were created so classical economist saw that it was more beneficial for the economy to not restrict the factories with government intervention.

American Revolution

1765

1765-1783

  • The American revolution started because the British Government implemented the Stamp Act, the Townshed Act, and the Tea Act.

  • These Acts were put in place to raise taxes to gain more revenue for the British Government after the French and Indian War.

  • Colonist did not like that they were paying these taxes and not have any representation in the British Parliament.

  • The colonist wanted to have their own government and be free from the oppressive British rule.

  • They created a militia to fight back Britain's Army and started a revolution.
  • The American Revolution was influenced by classical economists

  • America wanted limited government interaction with the economy so they looked at what classical economists were doing.

  • Part of what the colonists were fighting for was to have free trade, This is because the British had put a lot of restrictions on trade to try to earn more revenue from the colonies.

  • The founding fathers took Adam Smith's idea of not burdening the people with excessive warfare and taxation to have adequate public goods.

Title

David Ricardo

1772-1823

1800

About

  • English Economist, Stock Broker and author
  • Known for the corn laws

About

1810

1810

  • The High Price of Bullion, a Proof of the Depreciation of Bank Notes ( First work)
  • Proved the link between volume of bank notes and level of prices.

Corn Laws

1815

  • regulated the import and export
  • Ricardo talked about how this law affected both the country men and manufacturers by increasing rent and decreasing profit.

Principles of Political Economy and Taxation

1817

  • Three classes- Landlords, workers,owners of capital
  • Rent increases as population grows
  • Trade could maximize comparative advantage

John Stuart Mills

1806-1873

1806

  • English Philosopher,Economist

  • Known for Utilitarianism

About

The Essays on Some Unsettled Questions of Political Economy

1844

  • The distribution of the gains from trade
  • consumption and production
  • productive and unproductive labor
  • profits and wages

Questions

Question time

Works Cited

Works

Cited

Adam Smith. (2002). Retrieved November 24, 2019, from https://www.econlib.org/library/Enc1/bios/Smith.html.

The Editors of Encyclopaedia Britannica. (2018, March 18). Classical economics. Retrieved November 24, 2019, from https://www.britannica.com/topic/classical-economics.

History.com Editors. (2009, October 29). Revolutionary War. Retrieved from https://www.history.com/topics/american-revolution/american-revolution-history.

Wright, R., & Buffalo State College. (2016, July 7). Why the American Revolution Was Really an Economic Revolution. Retrieved from https://www.learnliberty.org/blog/why-the-american-revolution-was-really-an-economic-revolution/.

Chen, J. (2019, November 18). How the Industrial Revolution Changed Business and Society. Retrieved from https://www.investopedia.com/terms/i/industrial-revolution.asp

Anschutz, Richard Paul. “Public Life and Writing.” Encyclopædia Britannica, Encyclopædia Britannica, Inc., 14 Nov. 2019, https://www.britannica.com/biography/John-Stuart-Mill/Public-life-and-writing.

Spengler, Joseph J. “David Ricardo.” Encyclopædia Britannica, Encyclopædia Britannica, Inc., 7 Sept. 2019, https://www.britannica.com/biography/David-Ricardo.

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