1. Mr. Bertrandt

2. Industrial Revolution 1750 Great Depression 1933

3.  Pioneer and founder of classical economic thought. *(1776)

4. Wrote book of economic theories called “Wealth of Nations”

5.  Most well known theory is “Laissez Faire”.  Theory that government stays out of business, it allows buyers and sellers to meet in an “open market”, and supply and demand will regulate prices.

6.  Theory that profit motivation would result in an economic society obtaining the best goods and services, essentially competition forces producers to turn out the highest quality goods and services.

7.  Classical Economic Thinker *(1796)

8.  Theory that the population increases more rapidly than its food supply. Population = 2 – 4 – 8 – 16 – 32 – etc. Food Supply = 2 – 4 – 6 – 8 – 10 – etc.

9. This means that the earth cannot produce enough food to supply all of the people that inhabit it.

10. Malthus concluded that unless some factor intervened, the human race faced a “pessimistic future”.  1.War  2.Famine  3.Disease  4.Natural Disaster

11.  Theory that the food supply would hit a point where it could no longer increase even with the help of science or fertilizer.

12.  Malthus concluded that the “Passion of the Sexes” should be limited through late marriage and abstinence.

13.  As a result of Malthus’ findings and theories Economics was deemed a “Dismal Science.”

14.  Classical Economist Philosopher (1817)

15.  Theory that workers should receive no more than a subsistence wage, that way entrepreneurs can control all of the wealth.

16.  Ricardo believed that the entrepreneur should control wealth because it would result in progress and a better society.

17.  Classical Economic Philosopher (1820)

18.  Most famous for developing the “circular flow model.” The exchange of resources and money for goods and services and money between businesses and households.  Believed that the model was self-correcting based on supply and demand (wants and needs) and scarcity.

20. 3 Things all 4 Classical Economists Agreed On. 1. Limited Government 2. People’s right to private property. 3. Market will regulate itself.