Schools of Economic Thought Part 1: The Classical Economists

Economics is one of those things that fundamentally influences our lives on a day-to-day basis. Yet most of us only somewhat understand what it is and how it works.

 

In the first part of this three-part series, we’ll take a look at classical economics — widely regarded as the first modern school of economic thought — and the historical conditions in which it arose. We’ll also discuss the work of classical economists and how they pioneered a new way of thinking about markets, the way market economics work, and the uniquely human tendency to produce, trade, and consume.

 

Show Highlights

 

• [03:29] What is economics?

• [05:15] Historical context of classical economics

• [07:34] Mercantilism and how it works

• [11:58] The context in which Adam Smith wrote “The Wealth of Nations”

• [16:35] Adam Smith on the distribution of wealth

• [19:42] Adam Smith on the division of labor

• [23:52] Say's Law and the theory of comparative advantage

• [27:38] The role of competition in regulating markets

• [29:28] Socioeconomic problems in the 19th century

• [32:17] The Iron Law of Wages

• [33:12] The government’s role in the economy, according to 18th- and 19th-century economists

• [38:28] Problems with the classical economic model

 

Links and Resources

 

🟢 An Inquiry into the Nature and Causes of the Wealth of Nations → Adamsmith.org/the-wealth-of-nations

🟢 The Theory of Moral Sentiments → AdamSmith.org/the-theory-of-moral-sentiments

🟢 Beyond Order: 12 More Rules for Life by Jordan B. Peterson → JordanBPeterson.com/beyond-order/

🟢 Fiscally Savage → FiscallySavage.com

🟢 Fiscally Savage Tools → FiscallySavage.com/tools

🟢 Instagram → Instagram.com/fiscallysavage

🟢 Facebook → Facebook.com/fiscallysavage

🟢 Twitter → Twitter.com/FiscallySavage