Comparison of the Six Schools of Thought in Economics
| Market view
| Monopolizing markets.
| There should be less government intervention.
| Market should be self-regulating and resources are efficiently distributed by the “invisible hand”.
| Competition is evil, market is bad.
| Studied equilibrium and market should be self-regulating or self-correcting
| Market failures came about during hard times, government should intervene by spending.
| Distortions in the market are brought about by the disturbance of money supply and not by saving money.
| Through the amount of gold a nation possess
| Rome from agriculture and not from trade
| The yearly national income, instead of the king's treasury
| Laborers will create their government and distribute wealth to them
| Maximization of utility and profit.
| During recessions, economic output is strongly influenced by aggregate demand
| The demand for money is a stable function of wealth, prices, price changes and interest.
| Price and value determination
| The nobility dictates the price and value.
| Solely from the value of “land agriculture” or “land development”
| Amount of labor input. The value of a good is equivalent to the cost of producing it.
| Lack of price signals and free price system.
| Market price reflects interaction between supply and demand.
| Result of a sequential and evolving process driven by the force of the entrepreneurial function
| Variation in the money supply.
| State/Government behavior
| State should act like a merchant.
| Less government intervention
| Nations which trade are better off.
| Government employs, government pays according to one’s ability and needs
| Maximize profits
| Government should intervene through spending when market fails
| Government should a lot as an agent of the people and not a giver of benefit
| People’s behavior
| Follows the rules of the...
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