Economic History Thinkers and Theorists
Courses such as "Economic History" requires one to understand what economical theories and thoughts several (economic) thinkers brought forward. Below you will find a list of economic thinkers and theorists with a brief explanation of what effect each had on advancing the field of Economics. ... On one hand he held back economic thinking by emphasizing ethical issues and focusing on moral philosophy, on the other hand he advanced economics and all other social sciences by his use of abstract thinking. ... The lack of economic analysis in scholasticism, including Aquinas, makes it difficult to judge what was exactly meant by “just price”. ... He believed that it is the market that is guiding economic activity and that it acts like an invisible hand allocating resources to where it is needed. ... Ricardo developed many important areas of economic theory and had many other friends who were classical economists. ... The maximum level of economic rent would have been earned at this point. The level of economic rent that can be earned will therefore determine the allocation of each factor of production to each area of economic activity. ... He believed that the selfishness of economic behavior was natural, rational, and desirable. ... It was here, while writing on economic problems, that he became convinced of the economic basis of politics; that underlying political theories and political power lay the economic interests of various groups in society. ... Marx’s view of capitalism Marx begins with the idea that economic relationships are the fundamental driving force in any society. Particularly under capitalism primarily their own economic interests motivate people. In a capitalistic society, according to Marx, the two greatest economic interests are those of capitalist and worker. ... Recall this theory, which was developed by the economic liberals and the classical economists, stated that the true value of any product or service was simply the amount of labor used in its production. ... This exploitation of workers is only the direct economic effect of capitalism upon the working class. ... This side of the economic process also develops out of the relationships between labor and capital. ... At one level the argument has a moral basis: the inherent injustices of capitalism lead ultimately to economic and social conditions that cannot be maintained. ... And, finally, the argument is economic: the accumulation of capital in private hands makes possible economic abundance, yet accumulation also leads to depressions, chronic unemployment, and the economic breakdown of capitalism. ... Out of conflict comes change, and for this basic reason, according to Marx, capitalism must give way to another form of society in which conflict is replaced by ethical, social, and economic harmony. ... The developments in the fields of psychology and sociology also had their effect on the field of economics and economic thought. ... Walras explained how the entire economic system, including production of capital equipment and raw materials, was keyed to the spending decisions of the consumer. ... The new economics of marginal utility and general equilibrium found the source for economic values on the demand side of the market, in the preferences of consumers. ... Veblen worked with scientists and engineered an important position in building a new planned economic society. ... Veblen’s theory was to tear down the entire structure and rebuild a unified social science from economics, anthropology, sociology, psychology, and history. It was Veblen’s view that changed the conceptual thinking of orthodox economic theory from the time of Smith. ... In the Second World War he was given the opportunity to create a framework for post-war economic recovery. ... His main contribution to which still used in today’s economic policy. His first work was perhaps the most important work that had been done for decades and changed the whole face of post-war economic policy. ... This book was certainly not easy to read but it was a bestseller that changed not only the academic world of economics, but also the practical world of economic decision-making. ... In better economic times Keynes wanted the government to increase taxes or cutting government spending. ... In his 1st book, The Theory of Economic Development, he analyzes the function of the entrepreneur in creating economic progress and change. ... Superimposed on these “long waves” of economic activity are business cycles, as we know them. ... Though their position is made possible by the affluence of capitalist society, thinkers, writers, and teachers are critics of the existing order. ... Characteristic #3 is government intervention in economic life. ... These trends in economic organization, the climate of opinion, and the public policy lead to the gradual elimination of the entrepreneur from economic life, and with him the economic advances that gives capitalism appeal. ... He is also one of the select elite in the economic world that won a Nobel Prize in economics. ... Friedman developed the theory that, changes in monetary supply precede, rather then follow, changes in overall economic activity. ... Friedman made two particularly fundamental contributions to the economic policy.