Good Example Of Creative Writing On The Main Features Of Mercantilism Are Importance Of Money, Interest, Foreign Trade, Large Populations And Commercial Regulations.

The physiocrates believed that only agriculture can create wealth and only agricultural labour was productive. Classical economists were of the view that assets which satisfy the human wants and needs are the wealth of a nation. They believed in market mechanism to reach equilibrium without government intervention.
The Corn Laws were the regulation which controlled the import and export of grain in Britain. These laws were in force between 1815 and 1846 which restricted import of grain to keep the domestic prices high. The laws raised the prices of food .It was opposed by industrialists and workers. The Corn Law was repealed in 1846 after which free trade was carried, which helped to spread economic liberalization in Europe.
According to Malthus principle human population has exponential growth that is; it doubles after each cycle while food production growth is arithmetic. Food production will increase only by the same set number with each generation. From this it is understood that in the future, population will outgrow the food production capabilities.
The poor law was introduced to support the poor. Earlier parishes were responsible to provide relief to the poor .In 1834 poor law amendment made a change in the relief for the poor. Individuals were sent to work houses as it was felt that the poor were made lazy and avoided work. Anyone who asked for relief was to undertake work in return for relief. This made the truly desperate to seek relief.
According to Malthus, economic crisis or gluts occur due to decline in profits because of insufficient demand. He said that spending by landlords would avoid glut of goods. Rent according to him is a surplus based on the difference between cost of production and price of agricultural goods.
The main contribution to economics by Malthus is his Theory of population .According to his theory unchecked population will increase in geometrical ratio while production of food will increase in arithmetical ratio. Many factors which influenced population growth were not considered and so it was criticized by many people.
The theory of moral sentiments by Adam Smith explains that though a man is selfish there are some principles in his nature which shows interest in the happiness of others though he does not benefit from it. The pity or compassion, feeling of sorrow and the sensations of torture are conceived or imagined and thus it arouses some degree of emotion. He says that the fellow feeling comes because of changing places with the sufferer imaginatively.
The labour theory related to value states that the real money value of a good or service is calculated based on the labour needed for producing it. This theory suggests that goods that take the same production time should cost the same.
Money and debt are related and role of money has been changing. Debt and credit enable investment and economic growth as well as inflation. According to Keynes money of account exists along with debts. The old school of economic thought adheres to traditional fractional reserve multiplier model of money.