Name the three major economists. What did each believe about economics?
The three major economic theorists are Adam Smith, Karl Marx, and John Maynard Keyes. Smith is the founder of capitalism, which places an emphasis on competition and individual economic freedom and is used in most Western countries. Marx believed that capitalism was inherently exploitative and that the means of production should be centrally owned. Keyes took an "in-between" approach, maintaining a belief in economic freedom but asserting that the government should invest money in the economy as well.
The three major modern economists are Adam Smith, Karl Marx, and John Maynard Keyes. These three thinkers have vastly different ideas about what kind of economic system best lends itself to a stable, well-functioning society.
The economic theory that dominated the Industrial Age and has remained most prevalent in Western government is capitalism, which derives its major principles from Adam Smith. Smith was a Scotsman who published his book The Wealth of Nations in 1776. Capitalism revolves around Smith's ideas about individual interests and motivations. Smith believed that out of necessity, individuals in society could be trusted to produce the goods and services that all people need. He called this unspoken agreement "the invisible hand." Smith also believed that competition in an economy was necessary because it leads to innovation and increased production value.
A good example of an arena where this kind of competition might be useful is the pharmaceutical industry. If competing...
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