How Has the Study of Economics Developed over Time - Research Proposal Example

Essay Plan – History of Economics Submitted by: XXXXXXXX Number: XXXXXXX of XXXXXXXX XXXXXXX XXXXXXX Code: XXXXXXX Date of Submission: DD – MM – 2009 Word Count: 1432 (Excluding Bibliography) I. Introduction: A. Origin of term: The term ‘Economics’ originated from the Greek word – ‘oikonomikós’. ‘Oikonomikós’ means relating to the household (Galbraith, 1991). B. Economics: Economics is a social science. It deals with a variety of studies which include production, distribution, consumption of goods and services and demand and supply within a market (Cameron, et al., 2002). There have been several different theories that have been developed over the centuries (Heilbroner, 1999). C. This paper will deal with the history of economics and will provide a timeline of the history of economics and the main elements of economics that need to be understood will also be discussed here in the paper. II. Timeline of History: Below is a brief overview, these will be a few of the topics that will be touched upon in the essay. There have been several different thoughts and theories that have been presented over centuries in the field of political economy and ancient economics until the present day economics (Roncaglia, 2006). Adam Smith is considered to be the father of economics however his work has been based mainly on the works from the eighteenth century (Heilbroner, 1999). However, this was the same case all the theories of the eighteenth century were mainly from their predecessors with a few changes to fit into the modern day settings. It was only in the nineteenth century that Economics was considered to be a separate discipline by itself (Robbins, et al., 2000). There have been several contributions to the field. The timeline provided below is an overview of some of the important events that took place in the field of Economics (Xtimeline, 2007). Time Period Main Events Explanation 350 BC Chankya - Statecraft and Economic Policy Chankya wrote the Arthshastra. The book dealt with the Science of Political Economy. Chankya was a professor at Taila University and he later went on to become the Prime Minister of the Mauryan Empire. 350 BC Aristotle - Private Property Aristotle was the student of Plato, who was a student of orator Socrates. Aristotle was a Greek Philosopher who examined the different types of states, i.e. Aristocracy, constitutional, government, oligarchy, democracy, monarchy. He argued and fought for the need of property to private. In politics, Part five of book two, he argued that, property is something which requires being private. This will lead to everyone minding their own business and not interfering in one another’s business. He also went on to explain that it is only possible to do something kind, or a service to friends if the property is owned by a person. (Xtimeline, 2007). 350 BC The Ancient Economic Thought Chankya was one of the first to write a treatise on economics. This book included the principles of economics and the guidelines for an economy to be progressive. Aristotle had begun his discussions on economic topics like Household spending, market exchange and also the main motivation for human behaviour. A number of arguments had developed where the people felt that the economic changes that were happening would lead to a threat of the old attachments to a moral order. This also led to a tension between the old attitudes and the increasingly commercial world. 1125 Aquinas and the Concept of Just Price Thomas Aquinas, an Italian Theologian, and one of the oldest writers of economic issues, dealt with the concept of price. He argued that it is unfair for sellers to increase the price when buyers are in need for a product. He argued in one of his papers, that if a product is useful and a person is greatly helped by a product, and the seller is not affected by the loss of the product, it is essential that the seller does not charge the buyer a higher price as the benefits of the product to the buyer is mainly due to their own need and not from the seller. (Xtimeline, 2007). 1265 Scotuss - Need for Benefit from Trade Duns Scotus was one of the biggest critics of Aquinas. Scotus felt that the prices could be calculated in a more just manner as the sellers needed to also be paid for the labour and other expenses incurred. He argued that merchants were performing a number of tasks like transporting the goods from one place to another and making the goods available to the public; hence they needed to be compensated in a fair and just manner. 1332 Khalduns key - Social Cohesion Ibn Khaldun was one of the most well known Muslim scholars and was from Tunisia. Khaldun recognised that money was a standard form of exchange for goods and services; he however was unable to realize the value of gold and silver. He introduced new concepts like Khaldun - Laffer Curve, which explained the relationship between tax rates and the tax revenues. 1492 Mercantilism Christopher Columbus’s exploration in 1492 brought about the new powerful monarchies and this led to mercantilism. Mercantilism was a political move to gain power and an economic theory which advocated the need to use the state militarys power to allow a protection of the sources of the local supply markets. The term Mercantilism was coined in 1763 by Victor de Riqueti and went on to be popularised by Adam Smith 1641 Norths - Incorrect Trade Regulations Dudley North a wealthy merchant and land owner argues that the trade regulations were incorrect and required changes. He also argued that the trade regulation reduced the benefits and reduced the flow of cash and wealth. 1642 The British Enlightenment John Locke brought out the idea that the main wealth was not in trades but was in human labour. There were several arguments which were brought out during this period, like Newtons laws and all the oppositions and arguments against the laws. 1712 Circular Flow of Income Vincent de Gournay was another one of the disenchanted merchants who was also one of the early physiocrats who emphasised that agriculture was a source of wealth for people and it had high value. David B. Danbom a famous historian has written in context of the Physiocrats, ‘damned cities for their artificiality and praised more natural styles of living. They celebrated farmers’(Xtimeline, 2007). 1723 Father of Modern Political Economy - Adam Smith Smith brought out several different ideas and concepts into the markets. He argued that there was a need for system of natural liberty, and in a competitive market even the most selfish would work towards the good of all. He argued that prices were not an essential factor for the values of goods and services (Xtimeline, 2007). One of his classic statements for competition has been: "When the quantity of any commodity which is brought to market falls short of the effectual demand, all those who are willing to pay... cannot be supplied with the quantity which they want... Some of them will be willing to give more. A competition will begin among them, and the market price will rise... When the quantity brought to market exceeds the effectual demand, it cannot be all sold to those who are willing to pay the whole value of the rent, wages and profit, which must be paid in order to bring it thither... The market price will sink..." (Xtimeline, 2007). Smith brought out several views for the markets and his main aim was to reduce and regulate the evil human actions. 1895 Beatrice Webb - Founder of London School of Economics Beatrice Webb was a famous socialist who founded the London School of Economics and her main support was towards democracy rather than the Marxian Revolution 1963 Friedman - Quantity Theory of Money Friedman was one of the most influential economists of his times and he left behind a legacy with his work. He worked towards the concepts of Quantity theory of Money. He explains in one of his books, that a clear lag exists not only between the need for action and the recognition by the government, but also a lag between the recognition and the need for any form of action. There is also a lag in the action and the effects of the action. Friedman has been related to the slogan money matters numerous number of times, yet Friedman has also been able to face harsh criticism and also criticism of his ideologies from his colleagues. (Xtimeline, 2007) III. Conclusions: The various theories have been discussed and a complete timeline of the history of Economics has been discussed. Bibliography Cameron, Rondo and Neal, Larry. 2002. A Concise Economic History of the World: From Paleolithic Times to the Present, 4 edition. s.l. : Oxford University Press, USA, 2002. ISBN-10: 0195127056. Canterbery, E. Ray. 2001. A Brief History of Economics: Artful Approaches to the Dismal Science 2nd edition. s.l. : World Scientific Publishing Company, 2001. ISBN-10: 9810238495. Galbraith, John Kenneth. 1991. A History of Economics: The Past as the Present (Penguin Economics). s.l. : Penguin Books Ltd, 1991. ISBN-10: 0140153950. Heilbroner, Robert L. 1999. The Worldly Philosophers: The Lives, Times And Ideas Of The Great Economic Thinkers [7th Edition]. s.l. : Touchstone, 1999. ISBN -10 068486214X. Robbins, Lionel, et al. 2000. A History of Economic Thought. s.l. : Princeton University Press, 2000. ISBN-10: 0691070148. Roncaglia, Alessandro. 2006. The Wealth of Ideas: A History of Economic Thought. s.l. : Cambridge University Press, 2006. ISBN-10: 0521691877. Xtimeline. 2007. History Of Economics. Xtimeline. [Online] Famento, Inc., December 6, 2007. [Cited: November 4, 2009.] http://www.xtimeline.com/timeline/History-of-Economics. Read More