History of Economic Thought: Progressive Period

A set of ideas that advocate for collective ownership and control of the means of production to achieve a fairer society.

A political and economic theory that criticizes capitalism, advocating for a classless society through revolutionary social reform and common ownership of the means of production.

An ideology rooted in Marxist ideals aiming to establish a stateless, classless society by abolishing private property and implementing a planned economy.

The framework encompassing the production, allocation, and distribution of resources within a society or geographical area, shaped by institutions, organizations, and consumption patterns.

An economic system based on private ownership of the means of production, free markets, and minimal government intervention.

A system where the government controls and directs economic activity, including resource allocation and production.

A system blending elements of both market and command economics, where the government and private sector collaborate in resource allocation and production.

The process of producing goods and services using labor, capital, and resources.

Economic systems where decisions are based on tradition, customs, and values passed down through generations. These systems often rely on agriculture, hunting, and gathering, with limited technological advancements.

Economic systems characterized by private ownership of resources, free markets, and competitive forces. These systems prioritize profit, individual liberty, and economic mobility.

A situation where a small group of individuals or entities controls a large proportion of wealth and resources, often leading to disparities in income and opportunities.

Economic systems that focus on using natural resources sustainably and preserving cultural values. These systems often have a strong emphasis on community and social cohesion.

Unintended consequences of economic activities that affect people or the environment outside of the market transaction. Examples include pollution from factories or the depletion of natural resources.

Difficulties in the market mechanism leading to inefficient resource allocation or market failure. Examples include monopolies, public goods, and information asymmetry.

Policies and programs implemented by governments to protect individuals and families from financial hardship. Examples include unemployment benefits, disability insurance, and social security.

The ability of individuals to move between different economic statuses, often based on income, education, or occupation.

A moral philosophy that emphasizes the greatest happiness for the greatest number of people.

The idea that pleasure or happiness is the ultimate good and the basis of ethical action.

Actions are considered right if they promote happiness and wrong if they cause unhappiness.

The belief that everyone's happiness is equally valuable.

A type of utilitarianism where the morality of each individual action is judged based on its utility or happiness outcome.

A type of utilitarianism where the morality of an action is judged based on whether it follows a pre-defined rule or principle.

A situation where different customers pay varying prices for the same product or service based on factors like income level.

The idea that the end result justifies the means, even if the means are ethically questionable.

Economic ideas and theories influenced or guided by religious beliefs and doctrines.

Economic conservatism favors maintaining the current state of affairs, while Christian liberalism prioritizes economic development and improvement.

The degree to which economic conservatism or Christian liberalism shapes policy decisions varies depending on a country's political environment, cultural values, and historical context.

In a theocratic economic system, religious authorities play a significant role in determining economic policies, rules, and decision-making.

The specific religious beliefs and traditions of a society or community shape the form of theocratic economic theory.

Islamic economics, guided by Sharia law principles, emphasizes economic justice, banning interest (riba), and ethical business practices.

Religious beliefs, moral standards, and ethical considerations often guide economic actions and behaviors.

Economic issues like poverty, property rights, labor, and social justice may have different perspectives depending on the religion.

A type of economic philosophy where religious principles are interwoven into economic decision-making processes, emphasizing societal well-being and individual dignity.

A 14th-century Islamic thinker known for exploring the relationship between government, religion, and economic prosperity. He highlighted the importance of social cohesion and justice in economic progress.

The leader of Iran's Islamic Revolution who advocated for an Islamic-based economic system. He championed self-sufficiency, social fairness, and the elimination of exploitation.

A prominent Islamic thinker emphasizing social welfare and equitable wealth distribution in an Islamic-based economic system. He advocated for the abolition of interest-based financial systems and the establishment of a fair economic order.

The finance minister under King Louis XIV of France, he is noted for implementing mercantilist policies to strengthen the French economy.

An economic system where the government plays a significant role in regulating the economy, including resource allocation and production, often influenced by religious principles.

Variations in economic methods within theocratic systems due to differing interpretations of religious scriptures.

The extent to which religious ideas are integrated into economic policies and practices varies greatly across theocratic systems.

The economic theory that suggests economic systems evolve and adapt over time, drawing parallels to biological evolution. It acknowledges the influence of human nature and social elements on economic decision-making.

A perspective in economics that challenges the traditional view of pure rationality in decision-making, emphasizing the role of human behavior, social factors, and psychological influences in economic processes.

This concept highlights the dynamic and ever-changing nature of economic systems. Changes are driven by factors like innovation, technological advancements, and social shifts.

Evolutionary economics recognizes that economic systems are impacted by human behavior and social interactions. It emphasizes the study of these factors as essential for understanding economic outcomes.

This concept emphasizes the role of entrepreneurs in driving economic growth through innovation and new ventures. Entrepreneurs are seen as catalysts for change and progress.

Economic systems are not static. New ideas and technologies emerge, causing existing businesses and practices to fade or adapt, a process known as creative destruction. This continuous cycle fuels economic progress.

An alternative school of thought in economics that challenges traditional assumptions about rationality and equilibrium by focusing on the role of human behavior, social dynamics, and evolutionary processes in economic decision-making.

Evolutionary economics contends that economic systems adapt and evolve over time in response to various factors, much like biological systems. It acknowledges the importance of human behavior, social structures, and psychological elements in shaping economic outcomes.