By levidesmond69 on Skatehive
classical economics is an economy that runs best when left alone The core idea behind the classical economics born in the 18th century by Adam Smith when he published his book titled "The Wealth of Nations" is a Free Market System. Smith introduced many things like the Invisible Hand (demand and supply as the prevailing market guide) and also the idea that with millions of people each pursuing their own self-interest (selfish interest) unknowingly creates balance in the economy for example when a baker bake's bread they're not thinking about feeding the Society with breads but they're trying to make money and profit and because of this selfish pursuit of money and profit it ensures people get their daily bread and the economy is productive classical school also believes that prices, wages and markets naturally adjust themselves For example if bread becomes too expensive bakers will see an opportunity to make money and more Bakers enter the market increasing Supply and bringing down pri