Economic Thought Through History

Economic Thought Through History

• Economics originated from the ancient Greek word oeconomicus, meaning "management of the household."
• Aristotle (384-322 BCE) distinguished between "natural" and "unnatural" means of acquiring resources. Natural acquisition focused on survival needs (food, shelter), while unnatural acquisition involved unnecessary desires (luxury goods).
• Plato (427-347 BCE) advocated for human specialization within a city-state, foreshadowing ideas of efficiency and division of labor.
• The Bible included economic ideas, including critiques of interest-based lending.
• The Middle Ages saw St. Thomas Aquinas promote the concept of a "just price," where both buyer and seller feel fairly compensated.
• Economic thought differed significantly before 1500 compared to the period after. Before 1500, trade was limited, goods were primarily produced locally, and money/credit were less utilized.
• After 1500, global exploration spurred rapid market expansion and trade.
• This shift from self-sufficiency to money-based exchange led to the rise of structured economic theories and policies.
• The 1500s saw the rise of political economy over moral philosophy, aiming to bridge economic and political thought.
• Economic theories began to organize into comprehensive systems.

Key Schools of Economic Thought

• Mercantilism, Physiocrats, Classicism, Marxism & Socialism were major schools of thought in economics.
• Economists associated with each school exemplified their thought (e.g. Adam Smith, David Ricardo, Karl Marx).
• Some schools were antagonistic to prior ones, while others built upon or superseded earlier theories, as shown in their time-based development.
• Different relationships existed (friendly, hostile, etc) between the schools of thought and/or their proponents.

Value of Studying Economic History

• Studying economic history allows for better understanding of contemporary economic thought. Historical lessons and errors serve as guides for future decisions.
• Historical economic thought provides frameworks for approaching economic goals (e.g. growth, employment, stability).
• Analyzing the evolution of economic thought helps understand past successes, failures, and how social and political contexts affect economic policies and decision-making.
• A study of past economic thought enriches understanding of the broader contexts like politics, art, philosophy, etc.

Explore the evolution of economic thought from ancient Greece to the Middle Ages. This quiz highlights the contributions of key philosophers like Aristotle and Plato, alongside significant economic concepts such as the 'just price' and the distinction between natural and unnatural acquisition. Understand how economic ideas transformed leading up to global exploration after 1500.