Economists

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Adam Smith(1723-1790)

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"An Inquiry into the nature and causes of the Wealth of Nations" - proposes land, labor, and capital as the three factors of production and proposed an “invisible hand” governing economies(laissez-faire)... Also notably used a pin factory as an example of the division of labor

Very much about the division of labor which he said causes an increase in production; which it does...

"The Theory of Moral Sentiments" - argued that natural feelings of sympathy and conscience established a natural regulation of beneficial social patterns.

Scottish Philosopher

this man described potato-eaters as stronger and more beautiful than bread-eaters - referring to prostitutes often

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Milton Friedman

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American economist. Conservative thinker famous for his advocacy of monetarism (an revision of the quantity theory of money) in works like A Monetary History of the United States, 1867-1960 (1963). he is strongly associated with the ideals of laissez-faire government policy.

talked about externalities as spillovers
“The Methodology of Positive Economics” - simplicity and fruitfulness

1976 Nobel prize in economics

suggested that people spend about the same percentage of their income on consumption, no matter how large, in A Theory of the Consumption Function, which begat the “permanent income hypothesis.

questioned the Phillips curve by projecting that unemployment would never reach zero, but instead could only reach around 6 percent without triggering quicker inflation, known as its “natural rate,” or the NAIRU.

collaborated with Anna Swhartz on a Monetary History of the United States

He stated money supply should annually increase by a set percentage in his namesake “k-percentage rule.”

worked with Simon Kuznets that found that licensing doctors resulted in worse patient care

Questioned the phillips curve in kartesian economics

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Karl Marx

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"Economy and Society"

iron cage

German economist, historian, and social philosopher. Marx's principal contribution to economic thought was extending the labor theory of value to its logical conclusion, his theory of surplus value. This theory, along with his defense of economic materialism, appeared in Das Kapital (1867, 1885, 1894).

This thinker argued that capitalism resulted from primitive accumulation instead of original accumulation. This thinker labeled the idea that value exists in goods by themselves as "commodity fetishism." His book Critique of the (*) Gotha Program argues that an ideal society would follow the principle "from each, according to his ability; to each, according to his needs,"

Wrote the Communist Manifesto and Das Kapital with Friedrich Engels

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John Maynard Keynes

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deficit spending to help the economy

English economist. He is most famous for The General Theory of Employment, Interest and Money (1936), which judged most of classical economic analysis to be a special case (hence "General Theory") and argued that the best way to deal with prolonged recessions was deficit spending.

Wrote "The Economic Consequences of the Peace" where he condemned the Treaty of Versailles saying that it would lead to distasterous consequences

Did not like the gold standard

argued for devaluation over deflation and wrote that “In the long run we’re all dead” in his Tract on Monetary Reform

warned that excessive reparations against Germany following World War I would be disastrous in the Economic Consequences of the Peace

He declared that “demand creates its own supply” and introduced the idea of price-stickiness.

Wrote a Treatise on the theory of probability where he made fun of a guy that said that a hypothesis was equally likely to be true as it was to be false

Ideas/contributions include a namesake “cross,” the money multiplier, and aggregate supply and demand

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David Ricardo

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credited with introducing the differential theory of rent and the law of diminishing returns.

English economist. Ricardo is best known for Principles of Political Economy and Taxation, which introduced more-or-less modern notions of comparative advantage and its theoretical justification for unfettered international trade. He also put forth the so-called iron law of wages.

He disliked Tariffs

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John Kenneth Galbraith

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Francois Quesnay

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Alfred Marshall

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Thorstein Veblen

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John Stuart Mill

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Laissez-faire Economics

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Laissez-faire is an economic environment in which transactions between private parties are free from tariffs, government subsidies, and enforced monopolies, with only enough government regulations sufficient to protect property rights against theft and aggression.

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goods

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supply

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demand

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Supply-side Economics

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Stagflation

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monopoly

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externalities or spillovers

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a cost or benefit that is not transmitted through prices[1] or is incurred by a party who was not involved as either a buyer or seller of the goods or services causing the cost or benefit.

associated with the free-rider problem

Pigovian tax - tax applied to market activity that generates negative exernalities

Coase theorem - bargaining and well-defined property rights can stop negative exernalities instead of government intervention/regulation

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Phillips curve

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a historical inverse relationship between the rate of unemployment and the rate of inflation in an economy.