A THREE MINUTES HISTORY OF ECONOMIC
THINKING, ANCIENT TIMES TO 1950
Adam Smith
(1723 - 1790)
Vision : Revolutionary
Policy : 1) Free trade inside
and outside the country
2) Laissez Faire
Published Book :
1) An Inquiry into the Nature and
Causes of the Wealth of Nations
2) Theory of Moral Sentiments
Karl Max
(1818 - 1883)
Popularized : Capitalism
(workers are legally free to
sell their labor services yet
generally not free to own or
control the products of their
labor)
Introduce: Market Economy
(demand and supply curve,
elasticities and opportunity
costs)
John Maynard Keynes
(1883 - 1946)
Contributions : Prevent a
massive
defection
of
economists to Marxism.
Believe : Market economy
could be made to work if
guided at the national and
international
level
by
government.
Abba Lerner
(1903 - 1982)
Believe :
Functional finance
(how governments could
stabilize their economies
through the raising and
lowering of taxes or
expenditures.)
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