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Classical economics  is widely regarded as the first modern school of  economic thought.

Classical economics, also called classical political economy, was the original form of mainstream economics of the 18th and 19th centuries.

The Classical economics began with the English school of economic thought that originated during the late 18th century with Adam Smith and that reached maturity in the works of David Ricardo and John Stuart Mill.

The theories of the classical school, which dominated economic thinking in Great Britain until about 1870, focused on economic growth and economic freedom, stressing laissez-faire ideas and free competition.

• laissez-faire:

The phrase  is French  and literally means "let [them] do", but it broadly implies "let it be," "let them do as they will," or "leave it alone".

Laissez-faire  (or sometimes laisser-faire) is an economic environment in which transactions between private parties are free from  tariffs ,  government   subsidies , and enforced monopolies , with only enough government  regulations  sufficient to protect property rights  against  theft  and  aggression.

An Inquiry into the Nature and Causes of the Wealth of Nations, generally referred to by its shortened title The Wealth of Nations, written by Adam Smith and published in 1776 is usually considered to mark the beginning of classical economics. 

The term "classical economics" was coined by Karl Marx to refer to Ricardian economics – the economics of David Ricardo and James Mill and their predecessors – but usage was subsequently extended to include the followers of Ricardo.

Classical economics developed in the 18th- 19th centuries, during a period in which capitalism was emerging from feudalism and in which the industrial revolution was leading to vast changes in society.

These changes raised the question of how a society could be organized around a system in which every individual sought his or her own (monetary) gain.

Analyzing the growth in the wealth of nations and advocating policies to promote such growth was a major focus of classical economists.

Classical economists claimed that free markets regulate themselves, when free of any government intervention.

Adam Smith referred to a so-called invisible hand, which will move markets towards their natural equilibrium, without requiring any outside intervention.

Classical economists and their immediate predecessors reoriented economics away from an analysis of the ruler's personal interests to broader national interests.

Adam Smith, and also physiocrat Francois Quesnay, for example, identified the wealth of a nation with the yearly national income, instead of the king's treasury.

Smith saw this income as produced by labour, land, and capital.

With property rights to land and capital held by individuals, the national income is divided up between labourers, landlords, and capitalists in the form of wages, rent, and interest or profits.

Classical economics has developed into neoclassical economics, and many of its ideas remain fundamental in economics up to nowadays.

Other ideas, however, have been replaced by Keynesian economics after 1936, when “The General Theory of Employment, Interest and Money” written by John Maynard Keynes was published.

Some classical ideas are represented in various schools of economics, notably Marxian economics – Karl Marx being a contemporary of the classical economists and their immediate successors.

• Classical political economy: main representatives

• Adam Smith (1723–1790)

• David Ricardo (1772–1823)

• Thomas Malthus (1766–1834)

• Jean-Baptiste Say (1767–1832)

• John Stuart Mill (1806 –1873)

Many of the fundamental concepts and principles of classical economics were set forth in Adam Smith’s work “An Inquiry into the Nature and Causes of the Wealth of Nations” (1776).

Strongly opposed to the mercantilist theory and policy that had prevailed in Britain since the 16th century, Smith argued that free competition and free trade (without any government regulation!) would best promote a nation’s economic growth.

As Adam Smith saw it, the entire community benefits most when each of its members follows his or her own self-interest. In a free-enterprise system, individuals make a profit by producing goods that other people are willing to buy. Also, individuals spend money for goods that they want or need most. Smith demonstrated how the apparent chaos of competitive buying and selling is transmuted into an orderly system of economic cooperation that can meet individuals’ needs and increase their wealth. He also observed that this cooperative system occurs through the process of individual choice as opposed to central direction.