The Impact Of Classical Economics On The United States

The United States has always faced its fair share of economic ups and downs. Financial upturns can quickly lead to downswings, and there have been plenty of theorists who believe they can solve the great divide. No one ever plans for a recession to last more than a few months, let alone watch the economy crumble into a deep depression. How can this happen, when the economy is supposed to be able to self-correct itself as one theory suggests? Moreover, when self-correction does not triumph, does a new theory take effect to explain this conundrum? This week’s readings have introduced the concept of how classical economics have been taught since 1817, along with John Maynard Keynes ideologies (Rittenberg Tregarthen, 2012). To understand these two schools of thought, it is important to look at what each one stands for individually. David Ricardo is one of the founding fathers of what became known as classical economics. While technically all countries already had their ow n economic system, Ricardo was the first to describe a macroeconomic theory of how an economic society could remain stable for the then modern times. What David Ricardo proposed was, as mentioned above, the economy will self-correct itself. How self- correction is supposed to happen, is simply by not doing anything different at all. Businesses and workers continue to compete against each other, while allowing free trade to come through from other countries (creating more competition). During allShow MoreRelatedClassical Rome And Classical Greece1498 Words   |  6 PagesThe contemporary United States has been influenced by many ancient civilizations, mainly Classical Rome and Classical Greece. Even though Greece had a tremendous influence over our civilization, out of these two classical civilizations, I believe that Classical Rome has had a bigger impact on many aspects of the contemporary United States. 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