Historical Economics

Adam Smith: Father of Capitalism

• The Invisible Hand: Market regulated themselves through competition and self interest. 

• Laissez Faire: Limited government interference

• Competition benefits everyone. 

• Division of Labor: Specialization increases productivity and efficiency.

Karl Marx: Father of Communism

• Co-wrote The Communist Manifesto

• Criticized capitalism as exploitative and unfair. 

• Wanted a classless, stateless society where wealth is shared equally. 

• Argued workers create value, but capitalists profit from labour

• Predicted capitalism would collapse due to internal conflicts and instability.

John Maynard Keynes: Father of Modern Macroeconomics

• British who reshaped economic thought during Great Depression

• Claimed government intervention through spending and taxes could offset recessions. 

• Keynesian economics emphasized government policies to stabilize the economy.  

Milton Friedman: Leader of Monetarism

• American supporting free markers

• Developed Monetarism: Controlling money supply is best way to manage economy

• Opposed keynesian arguing government spending leads to inflation

• Criticized government welfare, advocating for freedom and personal responsibility.