Political Science 2211E Chapter Notes - Chapter Howlett, Netherton, Ramesh: Market Failure, Pareto Efficiency, Redistribution Of Income And Wealth
23 Oct 2017
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Howlett, netherto(cid:374), ra(cid:373)esh, (cid:862)the political eco(cid:374)o(cid:373)y of ca(cid:374)ada(cid:863) The origin of classical political economy coincided with, and aided the emergence of capitalism in europe. David ricardo, thomas malthus, james mill and mills son laid down the frame work that still forms the cornerstone of liberal political economy. Adam smiths was the first book to law out a complete, abstract model of the nature, structure ad workings of the capitalist systems. Benefits not only concerned those but also the whole society. Each individual pursuing their own selfish interest is led by an invisible hand to promote an end which was no part of his intention. All individuals were better off as a result of advancing in their own separate interests. Smith advocated policies designed to minimize interference by authority church or state. Classical liberal political economists saw the accumulation of capital and resulting new investment in productive capacity as the growth propelling force in the economy.
