The main stages in the development of economic theory

The basic concepts, principles and terms of the economy did not arise suddenly. They were the result of a long evolution of scientific knowledge and their application in practice. Over time, it became clear that most human needs can only be met by economic activity and production. They form the necessary conditions for this.

Information about the first attempts to study certain aspects of social processes can be found even in the writings of thinkers of Ancient Rome, Egypt and Greece, India and China. All of them considered issues related to wealth, money, trade, taxes, farming, housekeeping, and the like. However, the true history of the development of economic theory as a system of knowledge begins only with the XIV century. This is due to the new, general nature of the market economy.

The main stages in the development of economic theory are desirable to know for several reasons. First, information on the formation of science in different historical periods and under the influence of different cultural traditions will help to better understand the logic of modern thinking that has developed on their soil, its structure.

Secondly, information about how the main stages of the development of economic theory have passed will help more rigorously and seriously take into account the judgments of the present politicians. A knowledgeable person can compare them with similar statements and events that took place in the past, and not get caught again on the hook.

And, thirdly, when examining the main stages of the development of economic theory, each interested person certainly joins the treasury of world culture. Thus, he ennobles his mind, expands his world view, perceives reality more fully.

The main stages in the development of economic theory are outlined on the basis of at least two campaigns: absolutist and relativistic. The latter considers any historical phenomenon in the context of religious, political and other problems characteristic of that period. Absolutist approach proceeds from the fact that the theory develops along with the ongoing progress from erroneous assumptions to the true.

In this article, only the first stages of the development of economic theory are considered from the point of view of a mixed, relativistic-absolutist approach.

1. Mercantilism. Supporters of this direction considered the main source of wealth trade, the sphere of turnover. Enrichment was achieved by accumulating gold and silver money. Representatives of this direction: T. Mann, A. Montchretien. They reflected and defended the interests of the bourgeoisie, engaged in the sale of goods during the development of foreign trade and the accumulation of primary capital.

2. Physiocrats. Unlike mercantilists, they began to explore the sphere of production, and not just the sphere of circulation itself. The Physiocrats asserted that agricultural labor is the primary, real source of enrichment. They were sure that industry, trade, transport - these are barren areas, the work in which allows only to cover the costs of existence. But they do not bring profits for the society at all. The views of the physiocrats were shared by D. Noré, A. Turgot, F. Quesnay, V. Mirabeau.

3. Classical political economy. It arose together with the development of capitalism. Its founders are D. Ricardo, W. Petty, A. Smith. They focused all their attention on the analysis of economic phenomena, on the development of spheres of social production. It was the creators of classical political economy that introduced the notion of "labor theory of value." They viewed the market as a system capable of self-regulation.

4. Marxism. The founders of this trend went further. Marxists analyzed how forms of value develop in their diversity, proposed alternative views on money, labor productivity, reproduction, economic crises and land rent.