Pensamiento Económico

Introduction to Economic Thought

• Economics is the study of efficient resource allocation within a society to achieve specific goals. It encompasses microeconomics (individual agents) and macroeconomics (overall economic phenomena).
• Modern economic thought traces its roots to the Enlightenment and the Industrial Revolution, emerging as a distinct field in 1776 with Adam Smith's The Wealth of Nations.
• 20th century economics saw major events like the Great Depression, World War II, and the Bretton Woods Conference. Subsequent decades witnessed globalization and debates between Keynesian and neoliberal approaches.
• Current challenges include financial crises, sovereign debt issues, and the ongoing discussion of the balance between international, national, and local economic strategies.

Origins and Precursors of Modern Economics

• Ancient Greece: Aristotle (4th century BCE) explored private property and the difference between use value and exchange value.
• Medieval Period: Figures like St. Albert the Great and the School of Salamanca (Vitoria, Mercado, Azpilicueta) contributed to the discussion of money and value.
• Mercantilism (16th-18th centuries): Advocated state intervention to maximize a nation's wealth, typically through a positive balance of trade.
• Physiocracy (18th century, France): Believed agriculture was the sole source of wealth, emphasizing minimal government intervention and free markets. Quesnay's Tableau Économique was an early model of economic circulation.

Classical Economists (18th-19th centuries)

• Adam Smith: Championed free markets and the "invisible hand," arguing that individual self-interest often benefits society. His theory of value and labor, along with the principle of the division of labor, were foundational to classical economics.
• Smith's theory of value and labor: Value based on the human labor incorporated, land and capital as other determining factors
• David Ricardo: Developed the theory of comparative advantage, explaining why countries benefit from specialization in production. Also introduced the concept of diminishing returns.
• Thomas Robert Malthus: Focused on population growth, asserting that population growth outpaces resource production eventually leading to crisis
• Malthus' theory: Population growth increases geometrically, while resources increase arithmetically, limiting growth

Socialist Thought

• Socialist Utopians: (e.g., Saint-Simon, Fourier, Proudhon) envisioned alternative economic systems, criticizing the market-based models.
• Marxist Economics: (Marx and Engels) Viewed capitalism as inherently exploitative, focusing on class struggle and the eventual triumph of the proletariat. Explored the concept of surplus value and alienation of labor.

Neoclassical Economics

• Marginalist Revolution: (Jevons, Menger, Walras). This shift in thought prioritized consumer preferences and marginal utility to determine value, diverging from the labor theory.
• Neoclassical economics: shifts focus to consumer utility and marginal utility as determinants of value, moving away from labor theory.
• Alfred Marshall: Developed the concept of market equilibrium through supply and demand curves, integrating theoretical reasoning with empirical observations. Distinguished short-run and long-run analysis.
• Léon Walras: Developed models of general equilibrium, exploring interdependencies between markets.
• Vilfredo Pareto: Developed the concept of Pareto efficiency, examining optimal resource allocation in economic systems.

Additional Considerations

• Keynesian economics: Focuses primarily on aggregate demand to stimulate economic output, advocating government intervention during recessions.
• Modern developments: These developments continue to evolve in response to new challenges and opportunities, while respecting the groundwork laid by previous theories and thinkers.