1. Adam Smith, Karl Marx and John Maynard Keynes

2. WARM-UP
What is one way in which Market Economy and Mixed Economy are similar?
A They both share the idea of competition and individual rights.
B They both share the idea growing their own resources in old traditional ways
C They both share the idea the land and capital are owned by the government.
D They both share the idea of a hereditary ruler.

3. Adam Smith, 1723-1790 Scottish Enlightenment writer
Wanted to understand what made some countries wealthy and others not so much
In 1776, wrote An Inquiry into the Nature and Causes of the Wealth of Nations

4. Major Themes of Wealth of Nations
Division of Labor
Self Interest and Cooperation in Markets
Role of Government (Laissez-faire)
The Invisible Hand

5. Karl Marx, 1818-1883 German philosopher, economist, sociologist
Lived and wrote during the Industrial Revolution in Europe, which was a time of dramatic change to society
Observed how this transition created stark divisions and inequities in society
Communist Manifesto

6. Major themes of Karl Marx
Class struggle
Bourgeosie
Proletariat
Society will evolve from capitalism to socialism and finally to communism

7. John Maynard Keynes, 1883-1946 British economist
Greatly influenced understanding of macroeconomics
Concerned with how to regulate the boom and bust business cycle
Argued government intervention in the economy was necessary to control the fluctuations of the boom/bust economic cycle

8. Major Themes of Keynes
Wrote The General Theory of Employment, Interest and Money in 1936
Argued government involvement necessary to moderate “boom and bust” economic cycle
Government can do this through fiscal and monetary policy
Government’s use of monetary and fiscal policy can boost aggregate demand