Three Prospects of Economy

Three Prospects of Economy

1) Liberalism: (Capitalism).

2) Marxism: (Socialism).

3) Realism: (Nationalism).

Liberalism

(Capitalism)

Liberal Theory Of Economics:

The liberal theory of economics is the theory of economics developed in the Enlightenment, and believed to be first fully formulated by Adam Smith. It is associated with the political ideology of classical liberalism. The concept of economic liberalism or market liberalism underpinned the move towards a free market capitalist economic system in the late 18th century, and the subsequent demise of the mercantilist system. Today, the liberal theory of economics is strongly associated with some schools of conservatism, particularly liberal conservatism.

Private property and individual contracts form the basis of the liberal theory of economics. The early theory was based on the assumption that the economic actions of individuals are largely based on self-interest, and that allowing them to do so without any restrictions will produce the best results, provided that at least minimum standards of