Essay on Analysis of "New Ideas from Dead Economists"

1283 Words Dec 2nd, 2011 6 Pages
Todd G. Buchholz defines economics as the study of choice. Economists examine the consequences of the choices people make. The creation and evolution of economics over centuries came from the ideas of four economists: Adam Smith, Thomas Malthus, David Ricardo, John Stuart Mill, Karl Marx, Alfred Marshall and John Maynard Keynes. These well respected economists help the theory of economics grow and become what it is today. Economics started with the ideas of Adam Smith. He is credited as the first true economist. He had never taught nor took a class in economics. In his book The Wealth of Nations Smith alludes to the idea that self interest motives allows a nation to prosper entirely. People do something in order to gain something. …show more content…
John Stuart Mill strongly believed in freedom, particularly in speech. Mill’s ideas were the opposite of Ricardo’s. Mill said that production laws cannot be fixed and that distribution cannot be separated from production. He believed this method would contribute to production’s success. Mill proposed a proportional income tax; it states that everyone pays the same percentage of tax regardless of personal income. Mill would have exempt poor people from paying taxes. Mill suggested an inheritance tax. He believed that inheritance money is the best way to raise money. He wanted to people to work to make a living, instead of living off of family’s money. Mill urged mandatory education for all people, so that people make better decisions. Mill resisted the idea of public assistance for the poor people and relief programs. He thought that is was an easy way out and that eventually generations will lose the work ethic of the poor. Charitable donations would be the better aid, because it would not as successful as public welfare programs. The issue was that the rich would not donate money. Karl Marx’s economic theory is simple: history is about class struggle. The issue of class struggle, he said, will be the collapse of capitalism. Marx believed that the working class, bourgeois, will take over the government. The working class control society. For

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