Classical Political Economy

Classical political economy.

economy did not last for a long time, but it did a lot and changed the whole definition of

increasing population and limited resources as well as free competition. Main focuses of this

period between 1750 and 1867. Today, it is a term that primarily describes those groups of

and population growth. Population increases in a geometric progression, while production of

The main object, on which classical economic thinkers (Thomas Malthus, David Ricardo,

and John Stuart Mill) concentrated, was the analysis of the production, distribution, and the

exchange of commodities in market societies. They were mostly interested on the development

of commerce, the role of the state and the emergence of industrial capitalism.

However, for Adam the most important factor for the division of labor was skill specialization.

Adam Smith also opened a lot of new ideas that were worth overlooking them. In

his Wealth of Nations, he also predicted that division of labor could bring more advantages to the

society. One of them was the wealth improving and increase in the incentive to specialize when

get out of the way of commerce. He also stated that government should provide security,

margins. This means that a nation should concentrate in producing goods and industries in which

it is the strongest and could also compete internationally. Later on, they should also trade with

One of Ricardo’s theories was the long-term evolution of prices and land rents.