24 Jun THE FIRST THEORY OF POLITICAL ECONOMY REVOLVES CLOSELY AROUND THE IDEA OF “MALAISE AFIRE” CAPITALISM.
The first theory of political economy revolves closely around the idea of “malaise afire” capitalism. Translated effectively as “let it be,” this system proposes that there be little or no formal relationship between business and government. Growing out of the theories of Adam Smith, the essentially free-market approach argues that the public good can be seen as synonymous with economic efficiency and gains in the standard of living for individuals. According to Smith, the “invisible hand” (the aggregate of undisturbed decisions by buyers and sellers in the open market) tends to produce better goods, at cheaper prices, for more people. These cheap, high quality goods allow for a better standard of living through material abundance, utility, and comfort.
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