2.3.7 EVALUATE. Synthesizing Classical Economic Thought
A. What have you collectively learned during the Midterm in this course: Adam Smith, the father of classical economics, emphasized the invisible hand, division of labor, and minimal government intervention. David Ricardo expanded on Smith's ideas and introduced the theory of comparative advantage, suggesting nations specialize in producing goods with comparative advantages. Thomas Malthus, known for population theory, argued that population growth tends to outpace food supply, leading to famine and disease. John Stuart Mill advocated for labor unions and workers' rights, and introduced the concept of diminishing marginal utility. Say's Law, associated with Jean-Baptiste Say, argued that supply creates its own demand, meaning that producing goods and services automatically leads to the income and demand needed to purchase them. Classical economics laid the foundation for modern economic theories and policies, emphasizing free markets, minimal government intervention, and ind...
