CONTRAST-COMPARE ESSAY

ThE Ec°n°mY'S P!°NeeRs

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Through the history there have been many Economics schools such as Classical or Keynesian. Principally we’ll focus in the most important personages of each one respectively. Adam Smith of the Classic School; and John Maynard Keynes of the Keynesian School, instituted it by himself. The first was a pioneering political economist, his work help to create the modern academic discipline of economics, and provided one the best-known rationales for free trade. That’s why and great more reasons, Smith is widely acknowledged as the “Father of economics”. The second personality, John Maynard Keynes was a British economist whose ideas; called Keynesian economics, had a major impact on modern economic and political theory as well as on many governments’ political policies. He is one of the fathers of modern theoretical macroeconomics. To begin, Adam Smith (June 5, 1723 – July 17, 1790) was a Scottish moral philosopher and a pioneer of political economy. One of the key figures of the Scottish Enlightenment, Smith is the author of The Theory of Moral Sentiments and An Inquiry into the Nature and Causes of the Wealth of Nations. Smith studied moral philosophy at the University of Glasgow University of Glasgow and Oxford University. In contrast, John Maynard Keynes (5 June 1883 – 21 April 1946) received an education of elite in Eton and Cambridge, being faced towards the economy by council of his teacher, Alfred Marshall. After a brief period being employed at the administrative British service for the India, in 1909 it entered as teacher King's College of Cambridge, where it would teach economy up to his death. He revolutionized economics with his classic book, The General Theory of Employment, Interest and Money (1936).[1] Many economic modern theories have been strongly influenced and based on the ideas and assumptions of these two men, who dedicated his lives to the economic sciences, contributing new conceptions and schemes earlier not established and developing the bases of the economic prevailing system nowadays in many nations. Although they established the bases of what nowadays is the economy, each one focused in different topics. Adam Smith developed the Political Economic, processes of creation and distribution of wealth, the “Invisible Hand” concept and the free market in his book The Wealth Nations (1776). Smith is known for his explanation of how rational self-interest and competition, operating in a social framework depending on adherence to moral obligations, can lead to economic prosperity and well-being. He supports that the State had to abstain from intervening in the economy since if the men were acting freely in the search of his own interest; there was an “invisible hand” that was turning his efforts into benefits for all. On the other hand the essence of the Keynesian theory rests on of that the bourgeois State, in order to preserve and to consolidate the capitalist diet, must take control actively in the economic life and assure high profit to the most important capitalist monopolies. For it, in opinion of Keynes, it is necessary to found and to extend capitalist companies on account of the state budget, it is necessary to give financial help to the monopolies. Keynes understood that the bourgeois State can reduce the lay-off if there is regulated the consumption, the capital investment in the production and the level of the type of interest. The economic conceptions of Keynes appear in the base of the theory of the “guided economy”, theory spread in the capitalist world and that they have incorporated also into his arsenal, the Socialists of right hand and the revisionists. Thanks to the work and dedication of these two men to the economic sciences, the world has today a very organized economy of market, where the offer and the demand interact; furthermore the bases and contributions that supplied not only to the future economists, but also to the political futures, which are unrolled in entire nations across the whole world.





[1] Information took of web site: http://es.wikipedia.org/

By Paula A. Rodríguez M.