Escuela Clásica

Summary

This video discusses the classical school of economics founded by Adam Smith in 1776 with his groundbreaking work *The Wealth of Nations*. The script highlights key concepts such as the theory of value, which states that the price of a product is determined by the effort required to produce it. It emphasizes that prices are dictated by the market, with a limited role for the state. The system of capitalism is portrayed as eternal and unchanging, with the concept of free trade being fundamental to this economic school of thought.

Takeaways

• 😀 Classical economics was founded by Adam Smith in 1776 after publishing his book 'The Wealth of Nations'.
• 😀 The book 'The Wealth of Nations' served as the foundation for the ideas of classical economics.
• 😀 David Ricardo is a major exponent of classical economics, building upon Adam Smith's theories.
• 😀 The theory of value in classical economics suggests that the greater the effort involved in producing a product, the higher its price will be.
• 😀 Prices are determined by market forces in classical economics.
• 😀 The state has a limited role in the economy according to classical economic theory.
• 😀 Economics was established as a science with the discovery of economic laws.
• 😀 The capitalist system is seen as eternal and unchangeable within classical economic theory.
• 😀 The concept of a free market or 'laissez-faire' is fundamental to classical economics.
• 😀 The classical economic school emphasizes minimal government intervention in economic affairs.

Q & A

Who is considered the founder of classical economics?

Adam Smith is considered the founder of classical economics, having published his book 'The Wealth of Nations' in 1776.

What is the significance of Adam Smith's book 'The Wealth of Nations'?

'The Wealth of Nations' is a seminal work that laid the foundations of classical economics and significantly influenced economic thought.

Which major figure in classical economics followed Adam Smith's ideas?

David Ricardo was a major figure who followed Adam Smith's ideas and expanded upon them in his work 'Principles of Political Economy'.

What is the theory of value as described in classical economics?

The theory of value in classical economics states that the price of a product is determined by the effort required to produce it.

How is the price of a product determined according to classical economics?

In classical economics, the price of a product is dictated by market forces, meaning it is determined by supply and demand rather than government control.

What is the role of the state in classical economic theory?

Classical economics holds that the state's role should be limited, with minimal intervention in market activities and economic processes.

What is the view of classical economics on capitalism?

Classical economics views capitalism as an eternal and unchanging system that functions effectively when left to operate without interference.

How does classical economics view the concept of free trade?

Classical economics emphasizes the importance of free trade, or the free market, as a fundamental component for economic prosperity.

What were the main contributions of Adam Smith to classical economics?

Adam Smith's contributions include the theory of value, the concept of the 'invisible hand' guiding market forces, and the advocacy of free market capitalism.

How did classical economics influence the development of economics as a science?

Classical economics helped establish economics as a science by introducing systematic theories, such as the laws of supply and demand, and a focus on empirical analysis and rational thought.