Adam Smith
Adam Smith inquired into the nature of the market economy that was emerging at that time and argued about the increase of production of goods in the new system that would improve the living conditions of common people at large (An Inquiry into the Nature and Causes of the Wealth of Nations, 1776).
If the larger proportion of the product is devoted to production, that is, to investment in material capital and in maintaining productive labourers, the rate of growth of the economy will be high. Smith argued that if people are left free to save, the rate of saving will become the highest possible because people have a natural desire to improve their living conditions. In other words, a larger proportion of surplus will be employed productively if the saving decisions are left in the hands of ordinary people, instead of in the hands of governments, which Smith regarded most extravagant, judging from the historical experiences. For Smith, economic growth was most important for the reduction of poverty. He believed that if the economy grows, even within unequal distribution of income, the gains from economic growth will trickle down to common people through the consumption of rich classes. Smith also emphasized the importance of human capital. Smith did not explicitly consider the Poor Laws in England, but he severely criticized the Law of Settlement that restricted the movement of people between parishes.