CIA-History_Economic_Thought

=Economists=

Adam Smith
(16 June 1723 – 17 July 1790)

Amandeep Shahbaz Sergei Biography:
 * Refer to Textbook pg 48 for source**
 * Born north of Edinburgh, in County Fife, at a town called Kirkcaldy on 16 June 1723
 * the first political economist the world had ever known
 * head of the first school of economics, one that continues and is known as the "classical school."
 * Smith entered the University of Glasgow when he was fourteen and studied moral philosophy
 * at the age of seventeen, Smith was sent off to Oxford on scholarship.
 * at age 28, Adam Smith became a professor of Logic at Glasgow, and then, the following year, took the Chair of Moral Philosophy
 * in 1758 he became the dean of the university.
 * he lived with his mother (she lived to be ninety) and remained a bachelor all his life.
 * appointed, in 1778, as commissioner of customs for Edinburgh
 * died in Edinburgh on 17 July 1790 after a painful illness and was buried in the Canongate Kirkyard. On his death bed, Smith expressed disappointment that he had not achieved more.
 * Adam Smith has been commemorated in the UK on banknotes printed by two different banks; his portrait has appeared since 1981 on the £50 notes issued by the Clydesdale Bank in Scotland, and in in March 2007 Smith's image also appeared on the new series of £20 notes issued by the Bank of England, making him the first Scotsman to feature on an English banknote.
 * Known as the 'father of modern economics' and the 'founder of capitalism'.
 * first thinker to outline in detail characteristics and benefits of a complete economic system (free-market economy) in 2 volumes of work, The Wealth of Nations.
 * In his later life he took a tutoring position which allowed him to travel throughout Europe where he met other intellectual leaders of his day.

The Times:
 * Scottish moral philosopher and a pioneer of political economy
 * born in world where mercantilism (exporting as many goods as possible and importing little) economic system controlled by the state.
 * to make mercantilism work govt. had to adopt protectionist policy and introduce tariffs to protect own country's wealth.
 * Smith learned from Benjamin Franklin too much interference from govt. (e.g. British) leads to rebellion.
 * 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. The latter, usually abbreviated as The Wealth of Nations, is considered his magnum opus and the first modern work of economics. Adam Smith is widely cited as the father of modern economics.
 * Collaborate with David Hume during the Scottish Enlightenment.

Ideas that advanced Economic thinking:
 * Self Interest**:
 * Adam smith believed that human beings are motivated by self-interest and desire to do better to try and do better and make profits. This motivation provide major stimulus for economic growth and prosperity.
 * Smith uses phrase "invisible hand" to say in free market without govt intervention isn't required when self-interest and competition is in the free market.
 * Ongoing progress and prosperity:**
 * 3 reasons why country's experience continued economic growth and prosperity, division of labour, law of accumulation, law of population.
 * division of labour, is the specialization of cooperative labour in specific, circumscribed tasks and roles, intended to increase the productivity of labour, which increases profits for investors and more consumer goods for workers and eventually more economic efficiency for society.
 * law of accumulation states that the more profits made and that industries invest in more capital goods, e.g. factories, machinery, means that the increase in total production and efficiency increases in the entire economy. this means even high profits which once again can be reinvested and the cycle starts again.
 * Law of population according to Adam Smith contributes to the steady growth of growth and prosperity because the law of accumulation naturally increases demand for labour because there's more machinery and factories, and to attract them higher wages are instituted and higher wages leads to higher living conditions and less mortality rate. This leads to natural increase in population causing more labour force causing workers to compete more which naturally keeps wages from increasing and industrialists continue to make profits and repeats cycle.
 * System of Natural liberty**:
 * According to the system of natural liberty, the sovereign has only three duties:
 * first, the duty of protecting the society from the violence and invasion of other independent societies;
 * secondly, the duty of protecting every member of the society from the injustice or oppression of every other member of it
 * thirdly, the duty of erecting and maintaining certain public works and certain public institutions, which it can never be for the interest of any individual, or small number of individuals, to erect and maintain...

Positive Impact:
 * Inspired many economist ahead of him and first major worldwide economist
 * first person to examine a market structure (free market)
 * known as founder of capitalism because he made basic ideas of capitalism
 * known as father of modern economics because his work is basis for almost all economic theory known in the modern world.

Negative Impact:
 * Wasn't complete in his examination of economy and didn't really explain monopolies
 * did not contribute on other economic systems and other regions of economic systems
 * Wasn't right about laissez-faire always and sometime govt intervention needed (e.g. to prevent extreme recessions and depressions)

Thomas Robert Malthus
KJ, Mazen The Times:  · Born February 13, 1766- Died December 23, 1834 · Late 1700s to early 1800s(Late 18th Century to Early 19th Century  ·  Educated privately by his father and tutors  ·  Attended Jesus Collage in 1784, and in 1791 earned his master’s degree  ·  The setting in England is increased industrialization, labor getting subsistence wage, and corruption Ideas that advanced Economic thinking:
 * Malthus argued that as wages increase within an economy, the birth-rate increases while the death-rate decreases.
 * He further argued that as the supply of labor increases with the increased population-growth at a constant labor demand, the wages earned would decrease eventually to subsistence, where the birth-rate equals the death-rate, resulting in no growth in population.
 * Malthus assumed a constant labor-demand in his assessment of England, and in doing so he ignored the effects of industrialization. As the world became more industrialized, the level of technology and production grew, causing an increase in labor-demand. Thus, even though labor-supply increased, so did the demand for labor. In fact, the labor-demand arguably increased more than the supply, as measured by the historically observed increase in real wages globally with population growth.
 * Malthus emerged as the only economist of note to support customs duty on imported grain. Foreign laws, he noted, often prohibit or raise taxes on the export of corn in lean times, which meant that the British food supply could become captive to foreign politics. By encouraging domestic production, Malthus argued, the Corn Laws would guarantee British self-sufficiency in food.[
 * Malthus stated that rent cannot exist except in the case of surplus. He also said that rent, once accumulated, becomes subsequently a source of capital re-investment, causing positive effects through the growth and accumulation of productive wealth. He proposed rent to be a kind of surplus.

Positive Impact: · Brought attention to the potential dangers of population growth · Quite realistic · Made is harder for people to get welfare and public assistance, so only those who really needed it got the help Negative Impact: · With the industrial revolution and increase in agricultural production, land has become a less important factor than it was during the 18th century · Mechanized farmers are now getting more food out of an acre of arable land than Malthus could have imagined · Pessimistic predictions regarding the future of humanity · Appears to target the poor · His failure to anticipate the growth of technology such as disease prevention and medication which brings declining death rates

John Stuart Mill
Saad, Robbie, Fraser, Stephen

* Was the son of philosopher and historian James Mill
 * ** Economist: ** John Stuart Mill **Born:** May 20th, 1806 **Died:** May 8th, 1873 ||
 * ** Biography **
 * Shielded from other children by his father while growing up
 * Had a rigorous education (was taught Greek at 3, learned how to do algebra at 8, helped his father write a book at 12), which caused his nervous breakdown at 20
 * Married Harriet Taylor in 1851, who influenced him to advocate for women’s rights
 * Began to work for the East India Trading Company in 1858, became a British MP in 1865
 * While in parliament, advocated for minority/women’s rights, and called for reforms in voting (was the first MP to advocate for giving the vote to women) ||
 * ** The Times **
 * Mill lived in the Romantic era, which followed the Classical era
 * Was a shift in thinking from structured and religious to a more free-thinking, science-based society
 * Was also in the middle of the industrial revolution, when process that were done by hand before were becoming mechanized, and people were beginning to move from a more agricultural-based society to an urban one
 * Also was heavily influenced by the French Revolution
 * Influential thinkers of the time were: Charles Darwin, John Keats, Mary Shelley ||
 * ** Ideas That Advanced Economic Thinking **
 * 1) Was one of the founders of utilitarianism, which is the school of thought that “the moral worth of an action is determined by its contribution to overall utility” (utility is the combined contribution to happiness or pleasure to all people). Simply stated: the ends justify the means.
 * 2) He believed that everyone should be equally taxed. He said that increased taxation on the upper classes (progressive taxation) only served to penalize those who worked harder to earn their money.
 * 3) He was a believer in free markets, but also accepted that there must be some tax on certain items (such as alcohol), as long as it benefited the total utility of society ||
 * **Impact** ||
 * **Positive** || **Negative** ||
 * * His views benefitted women’s rights
 * Application of his theory would result in the greatest happiness for the majority of society
 * Believed in equal taxation, which gives incentives to work hard || * When his theories are applied, minority rights are sometimes ignored
 * Equal taxation means the poor get taxed as well
 * Believed in a free market economy, which means little help from the government for businesses/consumers\ ||

  Erin, Cindy, Kate and Yasmeen (Make Reference to page 55) **Biography:**  **The Times:**  -Marx thought that the laws of economics determine the course of human history. -He saw history as continuous series of class struggles between exploiters (capitalists / bourgeoisie) and exploited (workers / proletariat). -He believed Capitalist to be a self destructing system as the oppressed will eventually rise up against the ruling class as living standard worsens for workers. <span style="color: black; font-family: 'Segoe UI', 'sans-serif';">-Revolution from industrialized countries of Western Europe that would spread to rest of the world. -"From each according to ability and to each according to need" The labour value- the value of any item is the value of all labour used in its production. 2 types: direct labour (from the workers) & indirect labour (from the machinery, buildings, etc) Surplus value- the value generated from excluding all labour cost. (i.e. the profit) <span style="font-size: 10pt; font-family: 'Segoe UI', 'sans-serif';"><span style="font-family: 'Segoe UI', 'sans-serif';">- Karl Marx’s **<span style="font-family: 'Segoe UI', 'sans-serif';">Labour Theory of Value ** changed the way of how people look at the capital and labour, it created a revolution for workers -It created a global revolution which affected the way people worked and the conditions they were under -Riots were spread over the entire nation as workers demanded improved privileges that should become entitled to every human being -Till this day Marx’s theory has improved the wages, the conditions, health hazards, age barriers, tax reductions and benefits that workers are now permitted <span style="font-family: 'Segoe UI', 'sans-serif';"> **<span style="color: rgb(162,34,34);"> Negative Impacts: ** <span style="font-family: 'Segoe UI', 'sans-serif';">*Communism leads to decreased efficiency. People have less motivation for work than they would in a capitalist market, as they all recieve the same regardless of how well they perform (decreased competition). -Advocates Violent revolution as a means for change -Does not take into account human nature, greed, and the possibility for extreme corruption. -Marx's ideologies were attempted during the Russian Revolution (1917), and were an overall failure due to c
 * <span style="font-size: 15.5pt; line-height: 115%; font-family: 'Calibri', 'sans-serif';">Karl Marx **
 * <span style="font-family: 'Centaur', 'serif';">Karl Heinrich Marx was born into a comfortable middle-class home in Trier on the river Moselle in Germany on May 5, 1818.
 * <span style="font-family: 'Centaur', 'serif';">He studied jurisprudence at Bonn and later in Berlin.
 * <span style="font-family: 'Centaur', 'serif';">Karl Marx preoccupation with philosophy soon turned him away from law.
 * <span style="font-family: 'Centaur', 'serif';">Marx became the editor for a small middle class newspaper.
 * <span style="font-family: 'Centaur', 'serif';">One of his editorials got him into trouble with the government’s law on denying peasants the right to carry out the tradition of collecting dead wood. The authorities first censored the paper then closed it down.
 * <span style="font-family: 'Centaur', 'serif';">As Marx’s papers were suppressed by the state he became more and more outspoken.
 * <span style="font-family: 'Centaur', 'serif';">As his views became more revolutionary Marx fled Germany.
 * <span style="font-family: 'Centaur', 'serif';">He moved to Paris and then Brussels but his governmental trouble followed him all the way to London in 1849.
 * <span style="font-family: 'Centaur', 'serif';">Marx and his family lived in relative poverty for the rest of his life.
 * <span style="font-family: 'Centaur', 'serif';">Marx’s widely known paper //Das Kapital// was published in three volumes (1867, 1885 and 1894).
 * <span style="font-family: 'Centaur', 'serif';">After Marx died in 1883, Engels completed his book.
 * <span style="font-family: 'Centaur', 'serif';">1818- 1883
 * <span style="font-family: 'Centaur', 'serif';">Known as the most influential thinker of the 19th century.
 * <span style="font-family: 'Centaur', 'serif';">Marx did not live to see his ideas implemented in his own lifetime; however, his writings did develop the foundation for modern communism.
 * <span style="font-family: 'Centaur', 'serif';">During the lifetime of Karl Marx the world was facing many reforms politically, empires crumbled, countries were declaring independence and social classes were struggling.
 * <span style="font-family: 'Centaur', 'serif';">The 19th century was also a time in which many great powers engaged in conflicts and new advancements in exploration and new sciences.
 * <span style="font-family: 'Centaur', 'serif';">Marx had a childhood where he was able to witness the effects Industrial Revolution.
 * <span style="font-family: 'Centaur', 'serif';">Workers lived in poor conditions and worked in even worse conditions. These conditions included long work hours in unsafe and unclean workplaces.
 * <span style="color: rgb(162,34,34); font-family: 'Calibri', 'sans-serif';">Ideas that advanced Economic thinking: **
 * <span style="font-size: 12pt; color: black; line-height: 115%; font-family: 'Segoe UI', 'sans-serif';">*Economics and History **<span style="font-size: 12pt; color: black; line-height: 115%; font-family: 'Segoe UI', 'sans-serif';">
 * <span style="font-size: 12pt; color: black; font-family: 'Segoe UI', 'sans-serif';">*International communist revolution **<span style="font-size: 12pt; font-family: 'Segoe UI', 'sans-serif';">
 * <span style="font-size: 12pt; color: black; font-family: 'Segoe UI', 'sans-serif';">*The labour theory of value **<span style="color: black; font-family: 'Segoe UI', 'sans-serif';">
 * <span style="color: rgb(162,34,34);">Positive Impacts: **

John Maynard Keynes
Brett, Sumit, Shawn, Eric

//<span style="color: rgb(162,34,34);">The Times: // The Great Depression World War 2
 * World War 1

<span style="color: rgb(162,34,34);">Ideas that advanced Economic thinking:

- Keynes' basic idea was simple. In order to keep people fully employed, governments have to run deficits when the economy is slowing. That's because the private sector won't invest enough. As their markets become saturated, businesses reduce their investments, setting in motion a dangerous cycle: less investment, fewer jobs, less consumption and even less reason for business to invest. The economy may reach perfect balance, but at a cost of high unemployment and social misery. Better for governments to avoid the pain in the first place by taking up the slack.

- Believed that governmment had to help stimulate economy in bad times

- Also believed that wages had to be cut and governments had to run deficits inorder to get money back and keep away from high unemployment rates

<span style="color: rgb(162,34,34);">Positive Impact: <span style="font: 7pt 'Times New Roman'; msoasciifontfamily: Calibri; msofareastfontfamily: Calibri; msohansifontfamily: Calibri; msobidifontfamily: Calibri; msolist: Ignore;">- “Governments should intervene in times of market distress”, which is happening right now with the bailouts

- <span style="font-size: 11pt; color: black; line-height: 115%; font-family: 'Calibri', 'sans-serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-themecolor: text1; mso-ascii-theme-font: minor-latin; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-bidi-theme-font: minor-bidi; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;">Advocated <span style="font-size: 11pt; line-height: 115%; font-family: 'Calibri', 'sans-serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ascii-theme-font: minor-latin; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-bidi-theme-font: minor-bidi; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;"> interventionist government policy, by which the government would use fiscal and monetary measures to ease the negative effects of economic recessions, depressions, and booms

-  <span style="color: black; msoasciifontfamily: Calibri; msofareastfontfamily: Calibri; msohansifontfamily: Calibri; msobidifontfamily: Calibri; msolist: Ignore; mso-list: Ignore; msothemecolor: text1;">-  In order to keep people fully employed, governments have to run deficits when the economy is slowing, this helped USA out a lot during the peak of WW2, as their production out doubled and unemployment decline from 17% to 1%

- <span style="font-size: 11pt; line-height: 115%; font-family: 'Calibri', 'sans-serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ascii-theme-font: minor-latin; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-bidi-theme-font: minor-bidi; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;">After he died, the government continued his policy and the United States economy boomed <span style="color: rgb(162,34,34);">Negative Impact: - <span style="msoasciifontfamily: Calibri; msofareastfontfamily: Calibri; msohansifontfamily: Calibri; msobidifontfamily: Calibri; msolist: Ignore; mso-list: Ignore;">- People said that his writings and thoughts split the economics world - <span style="font-size: 11pt; line-height: 115%; font-family: 'Calibri', 'sans-serif'; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ascii-theme-font: minor-latin; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-bidi-theme-font: minor-bidi; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;">During the bad economic conditions of the 70’s and the oil crisis, a lot of people criticized Keynes theory, and therefore his theory was replaced as the primary influence on the American policy <span style="msoasciifontfamily: Calibri; msofareastfontfamily: Calibri; msohansifontfamily: Calibri; msobidifontfamily: Calibri; msolist: Ignore; mso-list: Ignore;">- Has received a lot of criticism for his thoughts

John Kenneth Galbraith
Jesse MacLean, Danya MacLean, Veanne Dong, Francis Lee

<span style="color: rgb(162,34,34);">The Times: <span style="color: rgb(162,34,34);">Ideas that advanced Economic thinking: <span style="color: rgb(162,34,34);">Positive Impact:
 * Before, during, and after World War II
 * 1960s - 1990s he wrote several economics books
 * He lectured in America at both Princeton and Harvard universities and was Professor of Economic
 * He worked in the Department of Agriculture during the New Deal plan to help United States recover from the great depression.
 * Galbraith's main ideas focused around the influence of the market power of large corporations. He believed that this market power weakened the widely-accepted principle of consumer sovereignty, allowing corporations to be price makers, rather than price takers. allowing corporations with the strongest market power to increase the production of their goods beyond an efficient amount.
 * He further believed that market power played a major role in inflation and argued that corporations and trade unions could only increase prices to the extent that their market power allowed them to. He argued that in situations of excessive market power, price controls effectively controlled inflation, but cautioned against using them in markets that were basically efficient such as agricultural goods and housing.
 * Galbraith's main argument is that as society becomes relatively more affluent, so private business must "create" consumer wants through advertising, and while this generates artificial affluence through the production of commercial goods and services, the public sector becomes neglected. He points out that while many Americans were able to purchase luxury items, their parks were polluted and their children attended poorly maintained schools. He argues that markets alone will underprovide (or fail to provide at all) for many public goods, whereas private goods are typically 'overprovided' due to the process of advertising creating an artificial demand above the individual's basic needs.
 * He noted that price controls were much easier to enforce in industries with relatively few buyers and sellers.([])
 * He agreed with the theory that firms do attempt to maximize profit __BUT__ that only best describes small firms and not the thousands of large firms that product most of societies output.
 * **The central protective purpose** of the firm is survival, which translates into the need to earn a profit sufficient to keep most stockholders relatively happy and to provide sufficient retained earning for investment and growth. To achieve less-than-max profit is to take out product price out of competition by direct or indirect price fixing. This price fixing is not to restrict output and gain max profit, but to assure that the rival firms earn a satisfactory level of profit, thus enabling them to meet their protective goals and to pursue their affirmative purposes
 * **The major affirmative purpose** of the firm is corporate growth. Galbraith’s view was that oligopolists fix prices at low levels - ones that achieve a minimum profit and permit expansion of total output and sales. Huge advertising outlays, campaigns to gain market share, unprofitable mergers between competitive and noncompetitive firms, and so forth, all make perfect sense if the goal is growth. He thought that the view of oligopolies restrict their output to max profit is corrupt
 * Simply put he didn’t like the idea of society to pursue a policy of laissez-faire, and allow this force to produce the social goods.
 * His economic ideas benefit society by allowing national production to produce more goods for society, in order to improve quality of life.
 * He believed that small firms should merge so that they can compete fairly witht the larger firms, so he recognized a different type of competition and that large firms are more efficient (large economic scale).
 * Government intervention would keep markets under control by fixing certain prices so consumers could keep the surplus, thus this benefits society.

<span style="color: rgb(162,34,34);">Negative Impact:
 * He seems to deny that the consumer has free will (buyers are able to determine their own interests and act on them)
 * Firm that fails to maximize its long-run profits runs the danger of becoming a target for a corporate takeover
 * The price of the target firm's common stock, which reflects the discounted stream of its anticipated future earnings, will be lower for the nonprofit maximizer than it could be

Milton Friedman
SALIMA, HOSAI, ADREW, JUSTIN

**Background**
 * <span style="font-size: 10pt; color: #444444; font-family: Arial, Helvetica, sans-serif;">Attended Rutgers university
 * <span style="font-size: 10pt; color: #444444; font-family: 'Segoe UI','sans-serif'; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EN-CA;"> <span style="font-size: 10pt; color: #444444; font-family: Arial, Helvetica, sans-serif;"><span style="font: 7pt 'Times New Roman'; color: #444444; msofareastfontfamily: Symbol; msobidifontfamily: Symbol; msolist: Ignore; msofareastlanguage: EN-CA;"> <span style="font-size: 10pt; color: #444444; font-family: 'Segoe UI','sans-serif'; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EN-CA;">Earned B.a. At the age of twenty
 * <span style="font-size: 10pt; color: #444444; font-family: 'Segoe UI','sans-serif'; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EN-CA;"> <span style="font-size: 10pt; color: #444444; font-family: Arial, Helvetica, sans-serif;"><span style="font: 7pt 'Times New Roman'; color: #444444; msofareastfontfamily: Symbol; msobidifontfamily: Symbol; msolist: Ignore; msofareastlanguage: EN-CA;"> <span style="font-size: 10pt; color: #444444; font-family: 'Segoe UI','sans-serif'; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EN-CA;">M.A at University of Chicago in 1933
 * <span style="font-size: 10pt; color: #444444; font-family: Arial, Helvetica, sans-serif;">Ph.d from Columbia University in 1946
 * <span style="font-size: 10pt; color: #444444; font-family: 'Segoe UI','sans-serif'; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EN-CA;"> <span style="font-size: 10pt; color: #444444; font-family: Arial, Helvetica, sans-serif;"><span style="font: 7pt 'Times New Roman'; color: #444444; msofareastfontfamily: Symbol; msobidifontfamily: Symbol; msolist: Ignore; msofareastlanguage: EN-CA;"> <span style="font-size: 10pt; color: #444444; font-family: 'Segoe UI','sans-serif'; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EN-CA;">Awarded Noel Prize in economics in 1976
 * <span style="font-size: 10pt; color: #444444; font-family: 'Segoe UI','sans-serif'; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EN-CA;"> <span style="font-size: 10pt; color: #444444; font-family: Arial, Helvetica, sans-serif;">President of the American economic association in 1967
 * <span style="font-size: 10pt; color: #444444; font-family: 'Segoe UI','sans-serif'; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EN-CA;"> <span style="font-size: 10pt; color: #444444; font-family: Arial, Helvetica, sans-serif;">Senior research fellow at the Hoover institution at Stanford university
 * <span style="font-size: 10pt; color: #444444; font-family: 'Segoe UI','sans-serif'; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EN-CA;"> <span style="font: 7pt 'Times New Roman'; color: #444444; msofareastfontfamily: Symbol; msobidifontfamily: Symbol; msolist: Ignore; msofareastlanguage: EN-CA;"> <span style="font-size: 10pt; color: #444444; font-family: 'Segoe UI','sans-serif'; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EN-CA;">Written many books such as Capitalism and Freedom and A Monetary History of the United States

<span style="color: rgb(162,34,34);">** The Times: ** **Ideas that advanced Economic thinking:** **Laissez-faires –** “to let people do as they wish” <span style="font: 7pt 'Times New Roman'; color: black; msofareastfontfamily: Symbol; msobidifontfamily: Symbol; msolist: Ignore; msofareastlanguage: EN-CA;">
 * <span style="font-family: Arial, Helvetica, sans-serif;">Took his first economics class in 1930, a time when the single most important issue facing Western nations was the Great Depression
 * <span style="font: 7pt 'Times New Roman'; font-size-adjust: none; font-stretch: normal; fontsizeadjust: none; fontstretch: normal;"> <span style="font-family: Arial, Helvetica, sans-serif;">End of World War Two
 * <span style="font-family: Arial, Helvetica, sans-serif;">He was strongly influenced by the amount of unproductive government in the US economy following the end of WWII
 * <span style="font: 7pt 'Times New Roman'; font-size-adjust: none; font-stretch: normal; fontsizeadjust: none; fontstretch: normal;"> <span style="font-family: Arial, Helvetica, sans-serif;">Both the economy and the individual citizen had become more dependant on government assistance

<span style="font-size: 10pt; color: #444444; font-family: 'Segoe UI','sans-serif'; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EN-CA;"><span style="font-size: 12pt; color: black; font-family: Calibri; msoasciifontfamily: Calibri; msofareastfontfamily: 'Times New Roman'; msohansifontfamily: Calibri; msobidifontfamily: 'Segoe UI'; msofareastlanguage: EN-CA;"> **The important of money supply-** the amount of money available in the economy at a particular point. <span style="font: 7pt 'Times New Roman'; color: black; msofareastfontfamily: Symbol; msobidifontfamily: Symbol; msolist: Ignore; msofareastlanguage: EN-CA;">
 * Problems in free markets will largely resolve themselves if they are left alone rather than subjected to government intervention
 * <span style="font-size: 12pt; color: black; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Segoe UI'; mso-fareast-language: EN-CA; mso-ascii-font-family: Calibri; mso-hansi-font-family: Calibri;"> <span style="font: 7pt 'Times New Roman'; color: black; msofareastfontfamily: Symbol; msobidifontfamily: Symbol; msolist: Ignore; msofareastlanguage: EN-CA;"> Self-sufficiency and productivity are key aspects of strong work ethics to sustain economic growth.
 * Advocate of guaranteed income
 * <span style="font-size: 10pt; color: #444444; font-family: 'Segoe UI','sans-serif'; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EN-CA;"> <span style="font: 7pt 'Times New Roman'; color: black; msofareastfontfamily: Symbol; msobidifontfamily: Symbol; msolist: Ignore; msofareastlanguage: EN-CA;"> No government interferes in business matter
 * Go vernment to influence the economy is by regulating the money supply in circulation.
 * Maintain that business cycles are determined by the money supply and interest rates, not by levels of taxation and government spending
 * Government should raise the money supply by fixed amount each year
 * <span style="font-size: 10pt; color: #444444; font-family: 'Segoe UI','sans-serif'; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EN-CA;">Too much in circulation causes inflation; too little money reduces investment and employment levels <span style="font-size: 12pt; color: black; font-family: Calibri; msoasciifontfamily: Calibri; msofareastfontfamily: 'Times New Roman'; msohansifontfamily: Calibri; msobidifontfamily: 'Segoe UI'; msofareastlanguage: EN-CA;">

**Positive Impact:** <span style="font-size: 90%; font-family: Arial, Helvetica, sans-serif; msoansilanguage: EN-US;"> <span style="color: #a22222; font-family: Arial, Helvetica, sans-serif; msoansilanguage: EN-US;">**Negative Impact:**
 * <span style="font-family: Arial, Helvetica, sans-serif; msoansilanguage: EN-USmsoAnsiLanguage;">lack of taxes, rules, regulations
 * <span style="font-family: Arial, Helvetica, sans-serif; msoansilanguage: EN-USmsoAnsiLanguage;">Lots of incentive for profit
 * <span style="font-family: Arial, Helvetica, sans-serif; msoansilanguage: EN-USmsoAnsiLanguage;">The invisible hand benefits all of society.
 * <span style="font-family: Arial, Helvetica, sans-serif; msoansilanguage: EN-USmsoAnsiLanguage;">Economic freedom
 * <span style="font-family: Arial, Helvetica, sans-serif; msoansilanguage: EN-USmsoAnsiLanguage;"><span style="font: 7pt 'Times New Roman'; color: #444444; msofareastfontfamily: Symbol; msobidifontfamily: Symbol; msolist: Ignore; msofareastlanguage: EN-CA;"> Increase in productivity
 * <span style="font-family: Arial, Helvetica, sans-serif; msoansilanguage: EN-USmsoAnsiLanguage;">Driven by competition and profit.
 * <span style="font: 7pt 'Times New Roman'; color: #444444; msofareastfontfamily: Symbol; msobidifontfamily: Symbol; msolist: Ignore; msofareastlanguage: EN-CA;"> <span style="font-size: 90%; font-family: Arial, Helvetica, sans-serif; msoansilanguage: EN-US;">Businesses always try to create something new in order to beat their competitor. Therefore allows consumers to have options (quality, pricing, variety etc.)
 * <span style="font-size: 90%; font-family: Arial, Helvetica, sans-serif;">Allows for monopolies, which doesn't benefit society.
 * <span style="font-size: 90%; font-family: Arial, Helvetica, sans-serif;">Bad working conditions, wages, etc...
 * <span style="font-size: 90%; font-family: Arial, Helvetica, sans-serif;"><span style="font: 7pt 'Times New Roman'; color: #444444; msofareastfontfamily: Symbol; msobidifontfamily: Symbol; msolist: Ignore; msofareastlanguage: EN-CA;"> Gap between rich and poor
 * <span style="font-size: 90%; font-family: Arial, Helvetica, sans-serif;">Inflation or deflation may occur
 * <span style="font-size: 90%; font-family: Arial, Helvetica, sans-serif;">Inflation reduces the purchasing power of money and deflation occurs when there is a decline in spending (government or personal spending) <span style="font-size: 10pt; color: #444444; font-family: 'Segoe UI','sans-serif'; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EN-CA;">