1.4 Key Economists and Their Contributions

This lesson explores influential economists like Adam Smith, Karl Marx, and John Maynard Keynes, whose ideas shaped modern policy and practice. Understanding their theories is important for any student considering a degree in Economics, as they provide the foundation for analysing markets, government policies, and global economic trends.

Adam Smith, often considered the father of modern Economics, introduced the concept of the "invisible hand" in his seminal work, The Wealth of Nations (1776). He argued that individuals, acting out of self-interest in a free market, unintentionally contribute to the economic well-being of society.

This idea laid the foundation for classical Economics and the belief in minimal government intervention in markets. Smith's work also introduced the concept of the division of labour, where productivity increases as workers specialise in specific tasks, driving economic growth.