Major Players In The History Of Economic Thought

The article based on my past experience as a tutor, my rote learned memories of my study of economics at school (1972 - 76) and University (1976 -79) and some recent research. Constructive criticism welcome !

ADAM SMITH (1723 - 1790) considered by many to be the founder of economics, described by Wikipedia as a pioneer of political economy. His publication in 1776 "An Inquiry into the nature and causes of the wealth of nations" provides a foundation upon which the tradition of English CLASSICAL ECONOMICS was founded (LAISSEZ - FAIRE).

Adam was born on the Fife coast in Scotland, a posthumous child, baptized on 5 June 1723, his father was a lawyer and civil servant. He has an elder step brother.

He entered Glasgow University at 14 years old, a little older than was usual then. Later he was Glasgow Universities 1st chair of logic (1751 - 1763) and later moral philosophy, presented for postgraduate studies at Balliol College, Oxford. Between 1764 and 1766 he toured Europe as a tutor and discovered the physiocratic school founded by Francois Quesnay.

I remember covering him and his ECONOMIC THEORIES during my O level at school between 1972 and 1974. His works cover topics on areas including DISTRIBUTION, VALUE, natural and money/market PRICE. In The Wealth of Nations he introduced his theory of ABSOLUTE ADVANTAGE and the DIVISION of LABOUR and SPECIALISATION.

Adam Smith used the "INVISIBLE HAND" metaphor to illustrate how free markets distribute goods in the most equitable way (in the public interest). His cannons or principles of TAXATION still stand the test of time.

He considered periods defined as mercantilism and physiocratic (The French economists Raphel and Quesnay) and preferred the physiocrats, although he rejected their views on the significance of agriculture recognising manufacturing industry.

JEAN - BAPTIST SAY (1767 - 1832) a French businessman who begun lecturing in the subject in 1816, later to become The Chair of Industrial Economy at the Conservatiore National des Artys et Metiers (1819). In 1831 he became Professor of Political Economy at the College de France. He can claim some credit for the concept of ENTREPRENEUR in ECONOMIC THEORY along with the other FACTORS OF PRODUCTION, LAND, LABOUR and CAPTIAL. I did not notice him until the mid 1980`s when I started tutoring A level economics, text books started to mention him in connection with the maxim "supply creates its own demand".

DAVID RICARDO (1772 - 1823) Ricardo was the son of Jewish parents who were connected with the money markets, first in the Netherlands and later London, an early influence was James Mill (father of J. S. Mill) and Jeremy Bentham. He had little formal education.

I remember 2 areas we covered in our 6th form A level were Ricardo`s THEORY of LABOUR and WAGES and of course the big one, his THEORY of COMPARATIVE AND ABSOLUTE ADVANTAGE within the terms of INTERNATIONAL TRADE.

Ricardo also developed ideas on RENT, LAND, POPULATION and commented on the theories of the French economist Say (Say`s Law, supply creates demand).

He corresponded with Malthus who was an economic spokesman concerned with over production and population growth. They had differences of opinion concerning Say`s Law. The 1st chair of Political Economy in England was created at University College London in 1828 in his memory.

THOMAS ROBERT MALTHUS (1766 - 1834) Thomas was 1 of 7 children, his father was apothecary to Kings George 11 and George 111. Educated at St John`s College, Cambridge studying mathematics and philosophy. He joined the Church of England as a pastor. He became Professor of History and Political Economy at the East Indian Company`s Hailsbury College.

He is most well known for his Essay on "Principles of Population as it Affects the Future Improvement of Society" (1798 rev 1803). I remember covering this in my A level economic classes, considering agricultural production growth as arithmetic and population growth as geometric. The essay was read by Charles Darwin amongst others and influenced his work on evolution.

KARL MARX (1818 - 1883) Marx`s economics drew heavily on DAVID RICARDO and the CLASSICAL SCHOOL. He helped lift economics out of it`s preoccupation with agriculture and stationary states. This concept would integrate well with my school studies concerning STATIC and DYNAMIC ANALYSIS.

Marx developed ideas from Adam Smith and David Ricardo concerning their LABOUR theory of VALUE.

ALFRED MARSHALL (1842 - 1924) graduate of mathematics at Cambridge University. In 1868 lectured in moral science at Cambridge and begun to study ECONOMICS. Alfred was born in SE London, his father was a clerk and cashier at the Bank of England.

His most important works include The Pure Theory of Foreign Trade (1879), The Principles of Economics (1890). Wikipedia claims his book "Principles of Economics" (1896) was a dominant text book in England for many years. Educated in the long tradition of English CLASSICAL ECONOMICS founded by Adam Smith and David Ricardo. He is considered one of the founders of the NEIO CLASSICAL ECONOMICS.

Marshall was Professor of Political Economy at Cambridge University (1985), his book The Principles deals with areas such as COST, ELASTICITY and DIMINISHING RETURNS. I remember again in the 6th form covering Marshallian THEORY of DISTRIBUTION using elementary differential calculus. He worked with Maynard Keynes`s father at Cambridge and taught Keynes junior.

It is considered that his achievement was to refine and develop MICROECONOMIC THEORY, most of which was still familiar to me and many others during my formative years of economic education. Examples are the relationship between DEMAND for a commodity and its dependency on consumer`s UTILITY or welfare. He coined the term ELASTICITY to describe measures of responsiveness of DEMAND to small changes in price.

PARETO, VILFREDO FREDERICO DAMASCO (1848 - 1923) his work is considered to form the basis upon which modern WELFARE ECONOMICS is based.

I remember coming across THE PARETO CRITERIA from school, described as "assessing good economic change" (some people are better off as a result of change, without at the same time anybody being worse off) in connection with WELFARE ECONOMICS at school during my A level.

Pareto was an Italian born in Paris, he worked in engineering for the Italian railways. He succeeded M.E.L WALRUS Chair of Economics in the Faculty of Law at Lausanne University in 1892. He developed ANALYTICAL ECONOMICS based on foundations laid by his predecessor WALRUS.

He considered the inadequacy of THEORIES of VALUE that rested upon measurable (CARDINAL) rather than ORDINAL UTILITY, looking at EXCHANGE in a competitive MARKET between individuals using MARGINAL UTILITY to assess an increase in total welfare.

PIQOU, ARTHUR CECIL (1877 - 1959) A pupil of ALFRED MARSHALL whom he succeeded to the Chair of Political Economy at Cambridge in 1908.

His major publications include Wealth and Welfare (1912), UNEMLOYMENT (1923), Economics Welfare (1919), Essays in Applied Economics (1923), Employment and Equilibrium (1941).

LORD JOHN MAYNARD KEYNES (1883 - 1946) along with Adam Smith, Keynes junior is considered by the Economist magazine to be the most famous British economists of all time ! He is considered the founder of MACROECONOMICS, this is formalised in his book "The General Theory of Employment, Interest and Money" published in 1936. This has been compared with the Wealth of Nations by Kenneth Galbraith in his book "A History of Economic the past as the present".

He was educated at ETON COLLEGE and won a scholarship to study at Cambridge in 1902, in 1904 he gained a 1st BA in mathematics.

Noteworthy publications include : The economic consequences of Mr Churchill, I remember from this my 6th form, he was concerned with the post World War 1 government return to the GOLD STANDARD at the pre war EXCHANGE RATE. The economic consequences of peace (1919) concerned with the German war reparation costs. A Treatise on Probability (1921). Treatise on Money (1930) considering the relationship between money being saved and money being invested. How to pay for the War (1940).

During the Great Depression of the 1930`s Keynes challenged NEO CLASSICAL ECONOMICS (LAISSEZ - FAIRE). This was formalised in The General Theory and prescribes INTERVENTION and DEMAND MANAGEMENT.

In the post World War 2 reconstruction he was instrumental in the creation at Bretton Woods of The International Monetary Fund (IMF) and The World Bank also The General Agreement on Tariffs and Trade (GATT) and eventually The World Trade Organisation (WTO).

MILTON FRIEDMAN(1912 - 2006) a US citizen who received the Alfred Nobel Prize for Economic Science in 1976.

According to Wikipedia Freidman characterises a resurgence of NEO CLASSICAL ECONOMICS and a rejection of KEYNESIAN THEORY, proffering MONETARY POLICY as apposed to FISCAL POLICY to manipulate the ECONOMY. Proposing a causation between MONEY SUPPLY and INFLATION. His philosophy extolled the virtues of FREE MARKETS or LAISSEZ - FAIRE.

He was Professor of Economics at The University of Chicago and later worked for the the National Bureau of Economic Research (1937).

His main publications include Essays in Positive Economics (1953). A Monetary History of the United States 1867 - 1960 (1963). The Optimum Quantity of Money (1969).

Considered a leading defender of the Marshallian tradition in MICROECONOMICS and CLASSICAL ECONOMICS.

His main work has been in the QUANTATITY THEORY OF MONEY and it`s empirical testing.

The NOBEL MEMORIAL PRIZE IN ECONOMIC SCIENCE started in 1969.

I guess you could use the prize winners as major contributions to modern economic thought, their contributions are to my mind very specialised (check out Adam Smith) and very much research orientated.

2009 the 1st female Nobel Prize Laureates in Economics is Elinor Ostram (1933 - 2012).

SOURCES :

Adam Smith. Copyright D.D Smith 1985.

A dictionary of Economics, 4th edition copyright Bannock, Baxter and Rees 1987.

A History of Economics the past as the present. Copyright John Kenneth Galbraith, 1987.

John Maynard Keynes "The Economists as The Saviour 1920 - 1937" Copyright Robert Skidelsky 1992.l

Wikipedia !