Classical Political Economy Vs Laissez Faire

Tata Institute of Social Sciences, School of Rural Development, Tuljapur

ASSIGNMENT

Course Name: SLNG Subject: Introduction to Political Economy

Submitted By: Nilesh D. Kharat

Roll No.09

MA 1st Year

2014-2015

Submitted To : Dr. Sudheer Sir

Write a short essay on any Two of the following

1. Distinguish between Classical Political Economy and Neo-Classical

Laissez – faire

Answer :

Adam Smith introduced laissez faire is an economic environment in which translation between private and free government restrictions tariff and subsidies, with only enough regulations to protect private property. In their view, the natural order functioned successfully without the aid of the government. They advised the state to restrict itself to upholding the rights of private property and self independence, to removing all artificial barriers and to abolishing all useless laws.

Laissez faire is a product of enlightenment, it was conceives as the way to unleash human potential through the restoration of a natural system, a system unhindered by the restrictions of government. Adam Smith said the economy as a natural system and market as an organic part of that system. Adam Smith saw Laissez Faire as a moral programme and the market its instrument to ensure the right of the natural law. By the extension free market become a reflection of the natural system of independence. For Adam Smith,Laissez Fair was a programme for the abolition of laws constraining the market, a programme for the restrictions of order and for the activation of potential growth. Laissez faire rests on the following

Physical order of nature is a harmonious and self-regulating system.

4. The axioms constitute the basic elements of laissez faire thought another basic and often disregarded element is that markets should be competitive, a rule that the early advocates of laissez faire have always.

5. Malthus theory of population Answer :

Thomas Robert Malthus was a British economist. He wrote a famous book “An Essay on the Principles of Population”. Malthus introduced that, The population of the world would increase in geometric proportion while the food resources available for them would increase in arithmetic proportions.

Human population was increase in an uncontrolled, then number of people increase faster rate than the food supply. When human population would reach the limit up to which food sources can support it.

According to Malthus, human society can never be perfect. He said man is a lazy animal. Malthus theory of population become a part of classical economic. Theory of population is mixture of moral justice and positive economics. There was two propositions of theory of population.

1.Population can not increase without food and food production.

2.Population is invariable increase if sufficient food is