Article: Political Economy

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International Encyclopedia of the Social Sciences
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Political Economy

MARXISM

NEOCLASSICAL ECONOMICS

BIBLIOGRAPHY

The phrase political economy came into currency in the seventeenth and eighteenth centuries. It is natural to think that the name refers to a discipline that studies how politics affects the economy and vice versa. Yet the fundamental idea of the original political economists — Adam Smith, David Ricardo, Thomas Malthus — was that an economy works best when governed least. They believed that there were economic principles that tended to produce the common good if government generally left people alone in their material endeavors. Adam Smith ’ s (1776) famous remark about “ the invisible hand ” puts ...

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