Adam Smith & John Maynard Keynes Essay Example | Topics and Well Written Essays - 2000 words - 1

Adam Smith & John Maynard Keynes - Essay object less(prenominal)onSmith sought to convince people that the wealth of a nation would be promoted with vastly greater effectiveness by the obvious and simple system of natural liberty than by national be after of the mercantilist sort (Mitchell 48). As for the implementation of Smiths reports, his influence on todays providence is probably greater than it was on his contemporaries or those who lived immediately after his works were published.An Inquiry into the temper and Causes of the Wealth of Nations (or more commonly The Wealth of Nations) by Adam Smith, published in 1776 is widely considered to be the first modern work in the field of economics. Up until The Wealth of Nations it was generally accepted that in any economic transaction one side always won. In other words, all the buyer or vendor got to put one over on his opponent one went theatre happy, the other went home and eventually got angry at himself for being a dupe. Smith rejected this notion, however, and stated that a voluntary, informed transaction always benefits both parties when the buyer gives something of value to the seller in vary for something else of value, both parties win. This is because the buyer values what the seller is selling more than what he is giving to the seller in exchange for it. And, for his part, the seller is all too happy to part with what he is selling for the buyers property, because he values that more. In short, each party gets something he wants more in exchange for something he wants less they both benefit.This book is a clearly written account of political economy at the fathom of the Industrial Revolution. Mercantilism was the ruling economic principle then. The Wealth of Nations attacks two fundamental principles of mercantilism the idea that protectionist tariffs serve the economic interests of a nation the idea that large reserves of gold bullion or other heavy metals are necessary for a countrys e conomic success (Smith