Classical economics is a school of thought that emerged in the late 18th and early 19th centuries, primarily associated with economists like Adam Smith and David Ricardo. It focuses on the idea that free markets, driven by supply and demand, can efficiently allocate resources without government intervention. Classical economists believe that individuals acting in their own self-interest ultimately benefit society as a whole.
A key concept in classical economics is the idea of the "invisible hand," which suggests that individuals pursuing their own interests inadvertently contribute to the overall economic well-being. This framework laid the groundwork for later economic theories and remains influential in discussions about market behavior and government policy.