EMERGENCE OF ECONOMICS
* Began with the contributions of Greeks and Xenophon’s instructional treaties on efficient management and leadership entitled “Oeconomics”. * Greek economy: pre-market where products were neither uniform nor traded on organized exchange and analyzed for their own sake. * Plato “Republic” : cities are founded on key principles of specialization & division of labor that creates mutual interdependence & further lead to reciprocal exchange * Aristotle (student of Plato)”Topics & Rhetoric” : He defended private property for all classes & not just for established leaders. * Exchange as a way to satisfy individual and collective wants & not as a mean for the state to accumulate wealth * Mercantilists – they emphasized the utilization of all available lands for agriculture, mining and manufacturing * Ultimate goal is to accumulate silver and gold
* Francois Quensay “ Physiocrats” : Importance of Nature in the economic development of country * Use of natural resources wisely and properly to attain the maximum advantage from it * “Table Economique” flow of the factors of production, goods and services in different sectors of the economy – “ Equilibrium” * Classicist – Classical School led by Adam Smith – The Father of Modern Economics * Laissez faire – let alone policy – stressed that gov’t should not interfere with the activities of man towards the free market, instead, concentrate on maintaining peace & order * “An Inquiry Into the Nature and Cause of the Wealth of Nation” – importance of specialization in achieving industrialization of the economy * David Ricardo – “Effect of Natural Resources in the development of the economy e.g. land “Principle – The Law of Diminishing Marginal Returns” – increase number of people will drive man to cultivate even the idle land (depletion of fertile land) * Thomas Robert Malthus – Effect of rapid increase of population “Malthusian...
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