classical economics

School of economic thought that dominated 19th-century thinking. It originated with Adam Smith's The Wealth of Nations (1776), which embodied many of the basic concepts and principles of the classical school. Smith's theories were further developed in the writings of John Stuart Mill and David Ricardo. Central to the theory were economic freedom, competition, and laissez-faire government. The idea that economic growth could best be promoted by free trade, unassisted by government, was in conflict with mercantilism.

The belief that agriculture was the chief determinant of economic health was also rejected in favour of manufacturing development, and the importance of labour productivity was stressed. The theories put forward by the classical economists still influence economists today.