Synthesis of economic thought until the eighteenth century // Economic history

pfernandezpetit (44)in #steemstem • 6 years ago

Introduction.

Many of the activities we do today need an economic understanding, since it is the society itself that has sought to link their experiences with some mode of payment transactions for their most common purchases. Now, in order to understand the economy of the contemporary world a little, it is necessary that we analyze the studies of philosophical thought about economics from the old age until the end of the 18th century, where we had a perception of the economy with changing characteristics, and that managed to adapt Certain postulates that helped to build the economic models that we know today, is why my intention through this arithmetic is to analyze the various economic thoughts that took place throughout the eighteenth century.

Description of economic thought.

In ancient times the precarious knowledge of economic phenomena determines a slow and incipient development of economic doctrines. Theories about consumption are not formulated, although its importance is recognized. In relation to production, attention rests on productive factors, work and natural resources.

No importance is given to capital because its functions were not yet recognized or considered independent of wealth. Another issue that was also neglected was that of exchange, because trade was considered a despicable occupation.

In the Middle Ages, when the monetary economy appears, it is a question of elaborating a theory about the functions of money. The distinction between value in use and exchange value and the way in which money influences to facilitate its calculation did not go unnoticed. Because the landowner hired production and it was he who owned the land and instruments of production for agricultural exploitation, and the salaried class did not yet exist, no importance was given to the elaboration of a theory of distribution. The focus is on relatively narrow issues. The analysis of change is very important and production is neglected. The problems that are addressed when trying to determine the fair price and the perception of interest acquire importance.

And to end the medieval era, with the emergence of industry and the development of trade that brought greater power to the monarchs, the economic issues that became important were money and public finances.

Both authors of antiquity, as those of the Middle Ages, contribute scarcely to economic thought and can contrast with the contributions made by mercantilists. The type of ideas that prevailed then was detached from philosophy, as well as from ethics; the economy becomes part of the culture of a large number of governors and statesmen who focus on national enrichment. It is in this period that the term Political Economy (that appears in 1615 thanks to Antonio de Montchséstien) is used more frequently than then, which then meant the form by which a country became rich as its territorial extension and its stocks in gold grew. Great importance is given to production issues as well as to the change and use of money.

Conclusions.

Historically we can analyze that the first economic steps of antiquity contemplated the aspects that little by little are generating a productive apparatus, where the generation of goods and services give rise to raw material and some processed goods that with hard work and knowing how to exploit some natural resources are accepting the first theories that a priori are those that govern the economic study model of today.
The first modes of production seemed to be oriented towards the well-being of ancient societies, without giving much importance to models of mercantilist capital, and where the exchanges of goods were barely developing as a way of subsistence among peoples.
Once the means of payment and exchange different from those known up to now have been established, interest in the development of certain theories that include capital, interest on loans, and everything related to the purchase of goods and services is started. services using fiduciary money as a means of payment.
With the advance of the industrial revolution a considerable power arises from the industrial and powerful, which is why it gives great importance to money and public finances, a historic step that in my opinion gives way to an economic liberation system called capitalism.
It is necessary to mark the exact chronology with historical details that mark in essence the point of departure where money began to be used as a means of payment, and mark the differences of that history to the current one.