Economics

Economics

Introduction

The history of economic thought, which consists of mercantilism and Physiocracy, contributed significantly to the development of political economy. The authors considered the first of Adam Smith and David Ricardo, who are counted among the representatives of the English classical economics.

Mercantilism

It was established at the turn of the fifteenth and sixteenth centuries, and acted in the economy until the eighteenth century. He was the first direction of economic thought, which rejected the influence of state and church institutions, and guided only by practical considerations. The purpose of this movement was to seek constructive solutions to improve the economy, and therefore the nature of moral issues, there were no ethical being.

The main message of mercantilism was a large accumulation of capital, in order to create a kind of foundation for the capitalist system. In this work we distinguish primary accumulation, which as a historical process was based on the separation of artisans and peasants of tools, which was then taken over by the capitalists, the entrepreneurs of that time (Henderson, 2008). This type of economic activities are highly visible in England, where the peasants were removed by force from their own land (i.e. displacement of peasants), and the next them to the cities, creating a cheap labor force. Accumulation of capital assumptions were made in a way forced.

The fifteenth and sixteenth century, is an example of capitalist development outside the process of assimilation of medieval guild. Also, this is a period of strong state influence on economic affairs of the country. That's when authorities dealt with the so-called capital accumulation. Primitive accumulation, which indeed led to capitalism, but at the cost of massive exploitation of domestic workers, as well as colonial. Therefore, mercantilism includes a kind of attempt to deal with the capitalist production system. Attempt, because a country's development was geared mainly to trade and the circulation of money, quite apart from manufacturing industry. Proponents of this form of development, believed that wealth is a measure of the amount of money held (gold, silver), which the colonial conquests wide streams flowed into Europe. For this reason, the state called for the introduction of the relevant prohibitions which would have reduced significantly, the export of money from the country (Smith, 2006).

Marxist Ideology

The Marxist ideology, which adhered to all, before the exercise of power, blinding is not emerged as an intellectual product of the working class, but comes from two men whose consciousness was by no means determined by their social being: Karl Marx, the educated classes, the son of a lawyer, and Friedrich Engels, successful factory manager.

Both had never do in their lives dependent work. Marx, who never saw a factory from the inside could be, except for a few months as an editor and later as editor in chief, hardly a living earning himself; that put him often in those areas of deprivation, which may well have sharpened his social compassion (Gibson-Graham, et. al., 2001).  Marx did, as an inheritance, money, immediately struck by his bourgeois consciousness - ...