What is classical economics? What's the point?

Classical economics is the mainstream school of economic thought since Adam Smith initiated Keynesian theory in 1776. The main followers include David. Ricardo and Thomas. Malthus and John. Generally speaking, Mill believes that economic laws (especially personal interests and competition) determine prices and factor rewards, and that the price system is the best way to allocate resources.

Key points: The main content of classical economics is the most common economic phenomenon at that time, which consists of value, land rent, profit, wages and monetary theory. At that time, the theories of various economists included the above points. The differences among economists are also in these aspects, and their economic theories cover the same scope.

Create background

The economic thought on the eve of the appearance of classical economics is "mercantilism".

From 14 to 15 century, with the rapid development of trade, especially overseas trade, mercantilism thought came into being. Mercantilism focused on the circulation field, studied commerce and foreign trade, and demonstrated the relationship between goods and money, which played an important role in the primitive accumulation of capitalism at that time. Classical political economy is a theoretical system founded by William of England. Little founder, Adam? David, Smith is a master? Ricardo finally finished.

Classical economics represents the interests of the emerging bourgeoisie and studies the internal relations of capitalist production to a certain extent. The basic view of mercantilism is that money is the only form of social wealth; In the absence of gold mines in a country, wealth can only come from the surplus of foreign trade; People are poor and the country is rich; Advocate state intervention in the economy and advocate policies that encourage exports, prohibit or restrict imports.