laissez-faire Classical Laissez-faire Economics The earliest organized school of economic thought is known as Classical. The father of this school is Adam Smith. Smith used the concept of the invisible hand to describe the role of the market in the allocation of resources. In the market, the interaction of demand and supply determines how much of a good will be produced and the price that is charged for that good. Absent any explicit guidance mechanism, …
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showed last 75 words of 2175 total
…occasionally frenetic, both inside and outside the economics profession. Of course, as economies evolve and conditions change (e.g., due to changing demography), the role of government based on the sound market principles enunciated above may reasonably ebb and flow. But capitalism once again needs its defenders, teachers, exemplars, and champions. The alternative models have proven historically, intellectually, and practically bankrupt. We would all be better off if the decriers of capitalism remained permanently discontented. ____________________________