Economic schools and their development

Table of contents:

Economic schools and their development
Economic schools and their development
Anonim

The formation of society is associated with the realization of material and spiritual human needs. Satisfaction of needs is the main motive for the participation of people in industrial relations and the foundation of economic development.

Value Needs

Human needs move people to action. Needs exist together with the means by which they are satisfied. These "tools" are formed directly in the workflow. Labor is a purposeful activity. It manifests itself primarily in the ability of a person to create objects and means for material production. In the formation of property, the central link is the appropriation of labor resources.

schools of economics
schools of economics

Economic interest

It arises on the basis of a system of diverse needs. Economic interests are the most important motive for labor activity. With the improvement of production, the number of needs increases. They, in turn, contribute to the further development of the economy. Formationneeds, among other things, depends on subjective factors. These primarily include the tastes and inclinations of a person, the spiritual needs of the individual, physiological and psychological characteristics, as well as folk customs and habits. In this regard, conditions are formed under which a person is forced to establish the value of services or goods.

Production activity

It is carried out with the help of the economic system. The latter is a specific social organizational mechanism. Due to the limited resources available, it is impossible to meet the needs of all members of society. Nevertheless, civilization strives for this goal as an ideal. This forces humanity to develop a variety of means that would make it possible to realize this task. Economic theory is one such tool.

Initial elements

The first signs of economic thinking are found in the writings of the thinkers of Ancient Egypt and ancient Indian treatises. Valuable commandments concerning management are also present in the Bible. As a scientific direction, economic theory began to take shape more clearly in the works of ancient Greek philosophers. The first ideas were formulated by Xenophon, Aristotle, Plato. It was they who introduced the term "economy", denoting the doctrine of creating and maintaining a household in slave-owning conditions. This direction was based on elements of natural work and the market.

economic schools
economic schools

Development of economic schools

The works of ancient Greek thinkers became the foundation for the further formation of the doctrine. It subsequently split into several branches. As a result, the following main economic schools were formed:

  • Mercantilism.
  • Marxism.
  • Physiocrats.
  • Classical School of Economics.
  • Keynesianism.
  • Neoclassical school.
  • Monetarism.
  • Marginalism and the historical school.
  • Institutionalism.
  • Neoclassical synthesis.
  • Left radical school.
  • Neoliberalism.
  • School of supply-side economics.
  • classical economic school
    classical economic school

General characteristics of the traditional direction

The main economic schools were formed under the influence of different views of different scientists. An outstanding role in the development of traditional teaching was played by such figures as F. Quesnay, W. Petit, A. Smith, D. Ricardo, D. S. Mil, Jean-Baptiste Say. With different views, they were united by several common ideas, on the basis of which the classical economic school was formed. First of all, all these authors were supporters of economic liberalism. Its essence is often expressed by the phrase laissez faire, which literally means "leave to do". The principle of this political demand was formulated by the Physiocrats. The idea was to provide complete economic freedom of the individual and competition, unrestricted by government intervention. Both of these economic schools considered man as "managingsubject". The desire of the individual to increase his we alth contributes to an increase in that of the whole society. The automatic mechanism of self-adjustment ("invisible hand", as Smith called it) directs the disparate actions of consumers and producers so that a long-term equilibrium is established in the entire system. underproduction, overproduction and unemployment become impossible in it. The authors of these ideas made a significant contribution to the formation of the school of economic science. Subsequently, they were used and improved. Many economic schools made their additions to these ideas. As a result, systems were formed that corresponded to one or another stage the formation of society. This is how, for example, the socio-economic school arose.

development of economic schools
development of economic schools

Smith's idea

On the basis of the school of economic theory, of which this figure was a supporter, the concept of labor value was developed. Smith and his followers believed that the formation of capital is carried out not only through agriculture. In this process, the work of other segments of the population, of the entire nation as a whole, is of particular importance. Proponents of this school of economic theory argued that by participating in the production process, workers at all levels enter into cooperation, collaborate, which, in turn, excludes any distinction between productive and "sterile" activities. Such interaction is most effective when carried out in the form of a marketbarter.

Economic schools: mercantilism and physiocrats

These teachings, as described above, existed in the 18th and 19th centuries. These economic schools had different views on the production of social we alth. Thus, mercantilism adhered to the idea that the base is trade. In order to increase the amount of public we alth, the government must in every way support domestic sellers and manufacturers, hindering the activities of foreign ones. Physiocrats believed that the economic basis is agriculture. They divided society into three classes: owners, producers and barren. As part of this exercise, tables were formulated, which, in turn, became the foundation for the formation of a model of intersectoral equilibrium.

https://fb.ru/misc/i/gallery/20380/743333
https://fb.ru/misc/i/gallery/20380/743333

Other directions of the 18th-19th centuries

Marginalism is an Austrian school of marginal utility. The leading figure in this direction was Karl Menger. Representatives of this school explained the concept of "cost" from the standpoint of consumer psychology. They tried to base the exchange not on production costs, but on a subjective assessment of the usefulness of goods sold and purchased. The neoclassical school, represented by Alfred Marshall, developed the concept of functional relationships. Leon Walras was a supporter of the mathematical direction. He characterized the market economy as a structure that is able to achieve equilibrium through the interaction of supply and demand. They developedoverall market balance concept.

Keynesianism and institutionalists

Keynes based his ideas on the assessment of the performance of the entire economic system as a whole. In his opinion, the structure of the market is not initially balanced. In this regard, he advocated strict state regulation of trade. Proponents of institutionalism, Earhart and Galbraith, believed that the analysis of an economic entity is impossible without taking into account the formation of the environment. They proposed a comprehensive study of the economic system in the dynamics of evolution.

socioeconomic school
socioeconomic school

Marxism

This direction was based on the theory of surplus value and the principle of the planned formation of the national economy. The leading figure in the doctrine was Karl Marx. His work was subsequently developed in the works of Plekhanov, Engels, Lenin and other followers. Some of the propositions put forward by Marx were revised by the "revisionists". These included, in particular, such figures as Bernstein, Sombart, Tugan-Baranovsky and others. In the Soviet years, Marxism acted as the basis of economic education and the only legal scientific direction.

Modern Russia: HSE

The Higher School of Economics is a research institute that carries out design, educational, socio-cultural and expert-analytical activities. It is based on international standards. HSE, acting as part of the academic community, considers involvement inuniversity global interaction, partnership with foreign institutions. Being a Russian university, the institution works for the benefit of the country and its population.

higher economic school
higher economic school

The main directions of the HSE are empirical and theoretical research, as well as the dissemination of knowledge. Teaching at the university is not limited to fundamental disciplines.

Recommended: