A History of Economics

The study of economic problems was first seen in ancient Greek writings, and scholars like Plato and Aristotle recognized the role of economics in the life of societies. Roman thinkers like Cicero and Virgil were also recorded to have given advice about the economics of agriculture.

The expansion of Europe in the 16th to the 18th centuries led to the creation of mercantilism, a system characterized by government regulations and economic nationalism. Protest against this system arose in the 18th century with the people rising to advocate for laissez-faire and that economics should follow natural laws. One of the most important works on economics to rise out of the 18th century was the works of David Hume which eventually became the basis or the theory of international trade. This was followed by Inquiry into the Nature and Causes of the Wealth of Nations by Adam Smith, considered to be the most complete piece on economics.

In the 19th century, Thomas Malthus and David Ricardo emerged as two of the leading economists of their time. Ricardo’s theory on labor was later adopted by the socialists. Capitalism underwent strict opposition from Karl Marx and his followers, but classical economics continued to flourish up until the outbreak of World War II.

After the war, more emphasis was placed on the analysis of economic growth and development, whose proponents include Arthur Lewis and Joseph Schumpeter. Recent fields of study, the main two of which are macro and micro economics, were added in the recent years. The newest braches of economics to be developed are econometrics and welfare economics.