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    Chapter 2

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    Maurice Zorilla
    The document discusses several topics related to pre-classical economics including: 1) The pre-classical period originated in the late 18th century and focused on economic growth and freedom with ideas of laissez-faire and free competition. 2) Early contributors to pre-classical theory included Robert Owen, Charles Babbage, and Andrew Ure who were pioneers in fields like human resource management. 3) The pre-classical era began in 1500 BC and ended around 250 CE, preceding the classical and post-classical periods which lasted from 1500 BC to 1500 CE.

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    Chapter 2

    Uploaded by

    Maurice Zorilla
    10 views18 pages
    The document discusses several topics related to pre-classical economics including: 1) The pre-classical period originated in the late 18th century and focused on economic growth and freedom with ideas of laissez-faire and free competition. 2) Early contributors to pre-classical theory included Robert Owen, Charles Babbage, and Andrew Ure who were pioneers in fields like human resource management. 3) The pre-classical era began in 1500 BC and ended around 250 CE, preceding the classical and post-classical periods which lasted from 1500 BC to 1500 CE.

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    The document discusses several topics related to pre-classical economics including: 1) The pre-classical period originated in the late 18th century and focused on economic growth and freedom with ideas of laissez-faire and free competition. 2) Early contributors to pre-classical theory included Robert Owen, Charles Babbage, and Andrew Ure who were pioneers in fields like human resource management. 3) The pre-classical era began in 1500 BC and ended around 250 CE, preceding the classical and post-classical periods which lasted from 1500 BC to 1500 CE.

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    © All Rights Reserved
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    10 views18 pages

    Chapter 2

    Uploaded by

    Maurice Zorilla
    The document discusses several topics related to pre-classical economics including: 1) The pre-classical period originated in the late 18th century and focused on economic growth and freedom with ideas of laissez-faire and free competition. 2) Early contributors to pre-classical theory included Robert Owen, Charles Babbage, and Andrew Ure who were pioneers in fields like human resource management. 3) The pre-classical era began in 1500 BC and ended around 250 CE, preceding the classical and post-classical periods which lasted from 1500 BC to 1500 CE.

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    of 18

    THE PRE-CLASSICAL

    ECONOMICS
    What is the meaning of classical
    economics?

    refers to the school of thought of economics that originated in the late


    18th and early 19th centuries, especially in Britain. It focused on
    economic growth and economic freedom, advocating laissez-faire ideas
    and belief in free competition.
    'LAISSEZ-FAIRE'

    The term 'laissez-faire' translates to 'leave alone' when


    it comes to economic intervention. This means no
    taxes, regulations, or tariffs. Instead, the market
    should be completely free to be led by the natural laws
    of supply and demand.
    WHAT ARE THE PRE CLASSICAL
    THEORIES?

    • Comte (1851) was interested in epistemology, or in other words, how humans


    obtain valid knowledge. He claimed human being's progression of knowledge went
    through three separate stages – theological, metaphysical, and scientific.
    WHAT IS "PRE-CLASSICAL"
    ECONOMIC THOUGHT?

    Material that has been considered by some to represent


    fragments of political, commercial and philosophical
    thought that preceded the development of systematic
    economics
    WHO IS THE FOUNDER OF PRE
    CLASSICAL THEORY?
    • I. Pre-Classical Contributions

    Among the principal pre-classical contributors are Robert


    Owen, Charles Babbage ,Andrew Ure and Charles Duplin
    and Henry R Towne. relations movement. He is
    considered as a pioneer in the field of human resource
    management process.
    THE CLASSICAL ECONOMIST
    • The main classical economists are Adam Smith, Jean-Baptiste Say, David
    Ricardo, Thomas Robert Malthus, and John Stuart Mill. The neoclassical
    model highlights supply and demand as the major determining factor behind
    producing and consuming goods and services.
    WHEN DID THE PRE CLASSICAL ERA
    START?

    • The three periods of time are pre-


    classic, classic, post-classic in 1500
    BC-1500 CE. The pre-classic era
    started in 1500 BC and ended in 250
    CE.
    WHAT IS CLASSICAL THEORY?

    • The classical theory implies that every


    complex concept has a classical
    analysis, where a classical analysis of a
    concept is a proposition giving
    metaphysically necessary and jointly
    sufficient conditions for being in the
    extension across possible worlds for that
    concept.
    WHAT WERE THE ECONOMIC IDEAS OF
    THE GREEKS?
    • In their writings, both Aristotle and Plato presented analyses of inte- grated
    economies in which specialization and the division of labor played significant
    roles. Self-interest, hedonism, and efficiency are all ideas utilized by the
    ancient Greeks.
    WHAT WAS THE ECONOMY OF THE
    GREEK ERA?

    Understand the Economy of Ancient


    Greece
    Ancient Greece mainly exported wine,
    olives, metalwork, and pottery. Most
    commonly, grains and pork were
    imported from places such as Sicily and
    Egypt. In city-states, peasants and
    artisans often sold their own crafts, but
    there were merchants that were divided
    into guilds.
    THE GREEK ECONOMIC SCHOOL
    OF THOUGHT
    Economic Ideas of Hebrews:
    • The beginnings of the science of economics and economic institutions are
    often traced back to the Hebrew and Jewish times. The society discussed
    in the Old Testament mentioned some of the characteristics of modern
    capitalism and private property. The Hebrews belong to the ancient
    civilizations of the world.

    “No one can serve two masters; for a slave will


    either hate the one and love the other, or be
    devoted to the one and despise the other. You
    cannot serve God and wealth” (NRSV, Matthew
    6:24).
    • Their period dates back to 2500 B.C. It is believed by some scholars that
    Western Civilization has its origin in Hebrew civilization. Division of labour,
    market, exchange, money etc., were the institutions of those times. The
    philosophers of those times were real founders of all social theories even
    though their writings were in a scattered form.

    • The economic philosophy of the Hebrews was simple. The society in which
    they lived was also a simple one. Economic problems were never studied
    separately. Economics, Politics, Ethics and Philosophy were interconnected.
    But religion and ethics were given greater importance. Economic life was
    controlled by priests. They gave importance to agriculture. The Hebrews had
    definite ideas on subjects such as interest, agriculture, property, taxation etc.
    • Western economics came into being with the rise of the capitalist market
    economy and gradually fashioned its theoretical system with the
    development of the capitalist market economy. Therefore, it is the
    concomitant of the capitalist market economy.
    PRE CLASSICA;
    MICROECONOMICS THEORY
    • Philosophers like Aristotle and Plato made references to issues in economics
    such as division of labour. The dominant ideas, pre-classical economics,
    were based on theories of mercantilism – the idea a nation should try to
    accumulate gold.
    ALFRED MARSHALL

    Economics in Marshall’s eye:


    Political economy or economics is a study of mankind in
    the
    ordinary business of life; It examines that part of individual
    and
    social action which is most closely connected with the
    attainment and with the use of material requisites of well-
    being
    On Ecnomic laws

    We seek to discover economic laws.


    Any law is a general proposition or statement of
    tendencies,
    more or less certain, more or less definite. Social laws are
    statements of social tendencies. Economic laws (or
    statement of economic tendencies) are those social laws
    that relate to human conduct in which the strength of the
    major motives can be measured by financial price.
    ECONOMIC LAWS
    are not natural laws that are necessarily beneficent. It may or may not be
    desirable to allow them to work without any restraining hand. The
    relationship among supply, demand, and price tend to produce certain
    results if
    they are allowed to work themselves out by themselves, but society can
    influence the outcome if it so desires. If supply and demand interactions in
    higher
    education are left to work themselves out they result in low amount of users
    because of the high prices. Higher education users would increase if prices
    are
    reduced through grants and provision of public
    universities.
    Marshall’s thinking left room for cautious reform, that is,

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