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Colbert was the minister of finance for Louis XIV. He was a very strong advocate of mercantilist policies (although the term mercantilism was never used by him). Mercantilism policies meant that the government would regulate production in France: where, how, and who would produce what. Moreover, the government would impose high tariffs on foreign goods. These policies reflect absolutism insofar as the government was involved in all aspects of the economy.
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This is a painting from Henri Testelin. This picture reflects the influence Colbert had on French economic policy.
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Adam Smith, a Scottish philosopher and economist, is the figure typically associated with liberal economic ideology. In 1776, he published his most famous work, "An Inquiry into the Nature and Causes of the Wealth of Nations". In this work, he would directly criticize Colbert's mercantilist policies. Smith argued for a free market as opposed to a market regulated by the government.
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David Ricardo is a british economist who is credited with the notion of comparative advantage. Ricardo, like Smith, was also against mercantilist policies. In his book, "On the principles of Political Economy and Taxation" (1817), he argued that free trade amongst countries is the most beneficial policy for all parties involved. States ought not to impose tariffs on imports.
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This is the most famous work by Adam Smith. He argues against mercantilism and argues for a free market.
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List was a German economist who published "The National System of Political Economy" (1841). In this book, he argued against Ricardo that complete free trade will better benefit those countries that are already industrialized, while hindering under-industrialized states. There is a disymmetry in the benfits. He argued that the state ought to play an important role in helping domestic industries grow in order to compete with the larger industries internationally.
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This is Ricardo's most famous work where he explains his theory of comparative advantage. He argues for free markets between states. Tariffs will only hinder both states.
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Karl Marx was a Germany philosopher and economist who published the "Communist Manifesto" (1848) with Engels. He argued against the market economy, claiming that it was the source of oppression rather the source of freedom and individuality, as Smith argued.
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This is List's most famous work. In it, he argues against Ricardo. Free trade is not the best policies for states that are not yet industrialized. Moreover, the state should take an active role in the economy.
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In this short book, Marx and Engels outline the main principles of communist ideology. They are against the free market as it tends to create inequalities. The Bourgeois class, the owners of capital, exploit the labour power of the Proletariat, the working class.
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John Maynard Keynes was an important figure in shapping 20th century economic policies in Western Europe. Keynesian economics was the most important school of thought in the aftermath of the Second World War. According to Keynes, the state ought to play an important role in keeping demand high in the economy. "The General Theory of Employment, Interest and Money" (1936) was his most important work.
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In this book, Keynes sets out the basic principles of Keynesian economics. He advocates for a high level of government expenditure in the economy in order to maintain high levels of demand during recessions.
