*100 points* I am trying to remember the difference between these 3 people in economics. here is the following info I have gotte
n and the best summarization gets the brainiest answer :D First Economist: Adam Smith Adam Smith lived from 1723–1790, was a Scottish philosopher and professor, and authored The Wealth of Nations. In his work, he argued that an economy regulated itself through the interaction of supply and demand and, therefore, was best left alone. He did not think the government should have a large active role in controlling the economy. Because of this, he believed in taxation at the minimum needed to support the operation of government, and thought the amount should be based on a person’s ability to pay. He supported free trade between nations, again believing that the market forces of supply and demand would contribute to the production of high quality goods and services at reasonable prices. He believed that individuals as consumers and business owners ought to be the ones answering the basic economic questions of what to produce, how to produce, and for whom to produce. Second Person: Karl Marx Karl Marx was German, lived from 1818–1883, and authored many works. Probably the most significant for economics students is Das Kapital (Capital, in English). Marx wrote in response to the change from a primarily agrarian economy to an industrial economy. He was concerned that this change created tension between groups of people, most notably factory owners and workers. He believed this tension, made worse by the seeking of profits by company owners, would result in economic collapse. He saw the natural next step as government control of the economy to prevent wide variation in the income of people, as well as to keep the prices of goods and services balanced. He thought of personal property as theft. In his mind, the government should provide the answers to the basic economic questions of what to produce, how to produce, and for whom to produce. Third Person: John Maynard Keynes John Maynard Keynes was British and lived from 1883–1946. He authored several works but his most significant, especially to economics students, is his General Theory of Employment, Interest, and Money. The way we divide the study of economics into macroeconomics and microeconomics can be traced to him. He believed in capitalism—that individuals should answer the basic economic questions of what to produce, how to produce, and for whom to produce. However, he believed that a capitalist system could be most efficient and protected from the negative consequences of major booms and busts through the government. His influence on society is most notable in the years following the Great Depression. The British and United States’ governments followed his recommendations of government spending, even putting themselves in debt, in order to stimulate the economy and get it back on track. A recent example of Keynesian economics is President Obama’s signing into law a large stimulus package in February 2009.
