Industrial Revolution

In 1723, in the Esccia, was born one of the most important economic thinkers who the world had notice? Adam Smith. Son of a typical family of middle class, since very early the figure of Smith characterized itself for its distraction and to the 16 years he was to study in Oxford, in England. It is considered the father of the modern Economy and the most important theoretician of economic liberalism. In full Industrial Revolution? 1776? it published a book that is considered the landmark of the Economic Theory? ' ' The Wealth of the Naes' ' , which served of theoretical base for the expansion of the industrial capitalism. In accordance with Adam Smith the auto-interest of a free society would provide the form fastest of a nation to reach the progress and the economic growth. In its liberal opinion the biggest obstacle to this economic progress would be the interventionism of the State in the Economy; therefore, for it, would exist one ' ' hand invisvel' ' that auto-it would regulate the market. That is, for Adam Smith if the market it was left in peace for governments it would always remain itself in balance. This it called of ' ' Laissez-Faire' '.

For it would fit to the State only three functions: (a) the establishment and the maintenance of justice; (b) the national defense; (c) the creation and the public maintenance of certain workmanships and institutions, which were not of private interest. It was radically against any restriction to the economic freedom that led to the monopoly of market. ECONOMY? Basic concepts the Economy studies the way for which the society distributes the limited resources of the Land for the insaciveis appetites of human beings e, in this scene, ' ' oferta' ' ' ' demanda' ' (it looks for) they are the operating forces. In what it is called ' ' point of equilbrio' ' , the market price allows that the offered amount is equal to the demanded amount.