Evolution of Economics
     Part 1: The Early Classical System and The Birth of Liberalism

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  Adam Smith, with An Inquiry into the Nature and Causes of the Wealth of Nations
  published in 1776 is unanimously hailed as the founder of economics as a social science and
  also of economic liberalism or capitalism as it is called to contrast it with socialism, the
  latter propagated by K. Marx at a later date.
  The group of economists that followed A.Smith, including such notable names as
  D.Ricardo, N.W.Senior, John Stuart Mill, culminating in Alfred Marshall (1890: Principles of
  Economics) is called the Classical School or alternately the Manchester School to refer to
  their place of origin. Their macroeconomic system is called the Classical System. Having
  accepted the Malthusian law of population (T.Robert Malthus: 1798 Essays on the Principle
  of Population) D. Ricardo had come up with a model in which growth eventually comes to a
  halt, moving to that point, however, all along at full employment equilibrium.This was also in
  line with the views of Adam Smith. Marshall had introduced the concept of elasticities and
  used the partial method of analysis. In contrast, Leon Walras, in his Eléments d'Economie
  Pure ou Theorie de La Richesse Sociale used the general equilibrium approach to prove that
  the economy arrives automatically to full employment equilibrium, following Adam Smith
  and the Classical School.
  This book offers a summary of the basic views and conclusions of Adam Smith
  concerning economic regime, as is also followed by the rest of the members of the Classical
  School: In a milieu of perfect competition prevailing in all the markets or sectors of the
  economy, including the labor market, full employment equilibrium will be achieved
  automatically. This equilibrium will, therefore, also maximize the welfare of the workers
  because the market wage rate, with no intrusions from the government or the unions, will
  have ensured full employment. Hence, there is no need for interventionism, that is, for the
  state to intervene prices, wages, channeling of investments and economic decisions in general.