What difference, if any, is there in the economy under the no government intervention of the Classical economists, and the fiscal policy intervention of the Keynesians?
Nobody likes government regulations, but they are often the result of someone massively abusing the system. Its funny how the oil execs are trying to say, “We have nothing to do with oil prices!!” while trying to stand in front of a massive pile of money, holding their arms out hoping no one will see.
Classical republicanism is a theory that the best kind of society is one that promotes the common good instead of only one class of citizens… Civic virtue, moral education and small, uniform communites are the basic purposes of classical republicanism.
Basically, the classical era would be speaking of Late Zhou to the Han.
I have to compare classical China to Modern America though, and I am not completely sure about government types.
I’m interested only in classical theory economics. I know that in this theory, the increase of money produces only inflation. What about the increase of tax rates? Does it increase prices or it just decrease investments?