Laissez-Faire Economics

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Laissez-Faire Economics

Post  Reny P. on Sat Jun 04, 2011 6:21 pm

Adam Smith – Main prophet of Laissez-Faire economics was Adam Smith. He said that a free market would help everyone, not just the rich. It would produce more goods at lower prices making them more affordable. Growing economy would encourage capitalists to reinvest profits in new ventures. He basically didn’t want the government to take part in any trading activities (economics).

Malthus – He predicted that population would outpace the food supply. This basically meant that as long as population kept increasing, the poor would suffer. He urged families to have fewer children.

Ricardo – He stated that when wages were high, families had more children. More children meant greater supply of labor which led to lower wages and higher unemployment. Both Ricado and Malthus opposed any government help for the poor, best cure for poverty was not government relief but it was the "laws of the free market". They felt that individuals should be left to improve themselves through hard work, and limiting the size of their families.

Source: World History Book
Reny P.

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