Economics tests. Chronological order of emergence of various schools of economists
Since ancient times, mankind has tried to understand what the essence of economic processes and laws on how to increase productivity, which is the measure of a country's wealth. Over time, views on the features of economic processes began to accumulate in certain trends, and then - economic schools.
Economic schools - this is a system of views on economic processes, which has its representatives and followers who are trying to explain the laws of development economic sphere society, offer their own ways to overcome the negative processes in it for the further development of society.
One of key questions for economists The 16th century was the question of what wealth is and how it can be increased.
In the 20th century there were new questions: what are the laws of the country's economic development, what is the role of the state in the economy, what should be its intervention.
Consider how representatives of different economic schools answer these questions.
Economic schools
Mercantilism
(5th-late 17th century)
Its representatives believed that the basis of the country's economic prosperity is wealth, namely silver and gold received by the country as a result of foreign trade.
Exports must exceed imports, this will lead to a supply of gold and silver, and therefore to the welfare of the nation.
Their motto is: buy less, sell more.
The government must support its producers (protectionism).
Representatives:
Antoine de Montchrentien (Treatise on Political Economy, 1615)
Thomas Mann ("Discourses on the Trade of England with the Ots Indies")
Physiocrats
(2nd half of the 18th century) - it was believed that the source of the country's wealth is Agriculture.
For the first time, they divided the spheres of the economy according to their importance for the country. Natural resources, agriculture are given by God, and the task of man is to increase them.
And since the main wealth is “from the land”, then the state should not interfere with entrepreneurs, everything should go naturally.
Representatives: O. Quesnay, A. Turgot, Vizer.
Classical political economy
(18th century - 30s of the 19th century) - its representatives studied relations in the production system, objective laws of economic development, analyzed production itself, capital.
It was believed that the main sphere in the economy is production.
For the first time formulated economic laws.
Considered the market as a self-regulating system ("invisible hand of the market", according to Smith).
They noted that the role of the state is only to support competition, provide communications, cost roads, develop education.
They outlined the theory of labor value, according to which the only source of value is human activity.
They considered the production process as reproduction with its four stages: production, exchange, distribution, consumption.
K. Marx called them the classics of political economy, hence the name of the school.
Representatives: A. Smith (“A Study on the Nature and Cause of the Wealth of Nations”), D. Ricardo (“The Beginning political economy"), at Petya. S.Sismondi.
Marxism
(mid-19th century) - K. Marx developed the labor theory of value, for the first time created the doctrine of surplus value (it is appropriated by capitalists in the form of profit, which is the basis of exploitation).
He gave a definition of the socio-economic formation, basing the formation on the interaction of productive forces and production relations.
The conflict between the productive forces that are ahead of development and the relations of production that are lagging behind can only be resolved through a revolution. As a result, there is a change of formations.
The development of society is based on material production.
Representatives : K. Marx ("Capital")
Malthusianism
(late 18th - 1st quarter of the 19th century) - Malthus formulated the law of decreasing soil fertility.
Population is growing and limited resources are shrinking. Population growth can be halted only by misfortunes (wars, epidemics) and moral abstinence.
Representative: Thomas Malthu "An Essay on the Law of Population".
marginalism
(“the school of marginal utility”) appeared in the second half of the 19th century.
Supporters noted that, along with the usefulness of the product, it is necessary to talk about its rarity.
They gave a definition of value from the point of view of the psychology of the buyer.
There is a hierarchy of needs.
The goal of a person is the maximum satisfaction of needs.
The choice of consumers depends on the degree of importance of the good
Representatives: W. Jevons (“Theory of Political Economy”), L. Walras (“Elements of Pure Political Economy”), K. Menger (“Fundamentals of Political Economy”).
Neoclassical political economy
This is the leading direction in modern economic theory.
The object of study is the balance of management of individual economic units, the least intervention of the state in the economy.
They set out the theory of production costs.
The concept of equilibrium price, studied the laws of supply and demand, the conditions of elasticity of demand.
Representatives: A. Marshall ("Principles of Political Economy", 1890), A. Pigou, J. B. Clark.
Keynesianism
(30s of the 20th century - up to our time) - representatives are sure that the state should actively intervene in the economy, regulate it by stimulating investment, aggregate demand, and conducting budgetary and credit policy.
Representatives: D. Keynes ("General Theory of Employment, Interest and Money")
Monetarism
(50s of the 20th century - to the present day) - representatives adhere to neoliberal views, advocate limited state intervention in the economy through the regulation of the circulation of money.
They believe that money is the main and decisive factor in the market economy. The state should carry out anti-inflationary activities.
monetarist rule: money turnover should expand at the same rate as real GDP growth.
The market economy strives for stability.
Representatives: L. Friedman ("The role of monetary (monetary) policy", "Money and economic development")
institutionalism
(70s of the 20th century) - it is based on the idea of the importance of the activities of institutions in decision-making on economic issues(state, legislation, public organizations and etc.).
Representatives believe that the driving force behind the development of society are social - legal and psychological factors, and not the development of industrial relations.
Developed the theory of post-industrial society, based on whose activity independent public institutions.
Representatives: Galbraith ("Affluent Society"), Oyken, Veblen, A. Hobson, D. Commons, T. Verlaine, L. Erhard ("Welfare for All")
Russian School of Economics
This is a generalized name for scientists-economists who have contributed to the development of science.
V.Dmitriev- proposed a methodology for applying applied mathematics in economic theory;
A. Chayanov- did a lot in the study of the theory of agrarian relations; N.Kondratiev— his theory of long waves underlies the concept of cyclical development of the economy, etc.
Note: a separate article is being prepared on the Russian school of economics. Follow the publications
Material prepared: Melnikova Vera Alexandrovna
Schools, directions and their representatives | Formation period | Key Ideas |
Mercantilism- the first school of jonomics. Thomas Man (1571-1641), Englishman | XVI-XVIII centuries | 1. The main wealth of society is money (gold and silver). 2. The source of wealth is the sphere of circulation (trade and money circulation). 3. Wealth accumulates as a result of foreign trade, and therefore it is only necessary to investigate the sphere of circulation |
School physiocrats(nature and Power). François Xnet (1694-1774), French | 18th century | 1. The true wealth of a nation is the product produced in agriculture. 2. They were the first to try to derive the increase in wealth from the process of production, and not circulation |
English classical political economy. William Netty (1623-1687), Ldam Smith (1723-1790), David Ricardo (1772-1823), English | XVII-XIX centuries | 1. The wealth of a nation is created in material production, and not in the sphere of circulation. 2. The main source of wealth is labor. 3. Political economy revealed the importance of labor as the basis and measure of the value of all goods. 4. Laid the foundations of the labor theory of value |
Marxism. Karl Marx (1818-1883), Friedrich Engels (1820-1895), Germans | From the middle of the XIX century. | 1. The theory of value and the theory of surplus value have been developed. 2. The law of value has been discovered as the law of the development of commodity production. 3. A theory of reproduction and economic crises has been developed. 4. The economic laws of the capitalist mode of production are discovered |
Continuation of the table. one.
The end of the table. 1.1
neoclassical trend. Alfred Marshall (1842-1924), Englishman | From the end of the 19th century | 1. Private enterprise market system capable of self-regulation and maintaining economic balance. 2. The state creates favorable conditions for the functioning of a market economy |
Keynesianism. John Keynes (1883-1946), Englishman | Since the 1930s | 1. The theory of supply and demand, as well as the equilibrium price, has been developed. 2. The state must actively regulate the economy, because the market is not capable of providing the social and economic stability of the society. 3. The state must regulate the economy through the budget and credit, eliminating crises, ensuring full employment and high production growth. 4. The theory of effective demand and the theory of effective investment have been developed. |
Neoclassical synthesis. John Hicks (1904-1989), Paul Samuelson (1915), Americans | Since the 1950s | 1. Depending on the development of the economy, it is proposed to use either the Keynesian recommendations of state regulation, or the recipes of economists who stand in the position of limiting state intervention in the economy. 2. The best regulator is de gentle-credit methods. 3. The market mechanism is capable of balancing itself between supply and demand, production and consumption |
But no theory can claim absolute and eternal truth. Every school suffers in one way or another from one-sidedness and exaggeration. acts from the position of i and a united social group and a certain period.
Brief conclusions
1. Economics studies the activities of people associated with the production, distribution, exchange and consumption of economic goods, i.e. people's activities related to the efficient use of limited resources in order to meet the unlimited and constantly changing needs of people for economic benefits.
2.") Economics and law are closely intertwined. Pra-noie norms create the necessary prerequisites for the normal functioning of the economy. The very norms of law that regulate the economic life of society are generated by the changes taking place in the economy.
3. The main methods of cognition of economic processes and phenomena are scientific abstraction, induction and deduction, analysis and synthesis (historical and logical), economic and mathematical modeling.
4. Economic phenomena and processes are studied at different levels: microeconomics - the study of the activities of individual economic entities; macroeconomics - the study of economics in general.
5. A positive economy establishes real economic ties without giving them an assessment. It deals with what is or can be. Normative economics is subjective value judgments about what should be, what economic relations should be, what decisions should be made.
6. Economic laws are the most significant, stable, constantly recurring, typical interdependencies and causal relationships in economic processes and phenomena. Knowledge of economic laws is necessary for making effective economic decisions.
7. The historical process of the development of economic science can be represented by such main economic schools and trends as mercantilism, physiocratic school, classical English political economy, Marxism, neoclassical school, Keynesianism, monetarism.
Economic training
Key terms and concepts
Political economy, economics, microeconomics, macroeconomics, normative and positive economics, scientific abstraction, analysis and synthesis, induction and deduction, economic and mathematical modeling, economic experiments, economic laws, economic categories, economic relations, general laws, specific laws, socio-economic relations, organizational and technical relations, mercantilism, physiocracy, classical political economy, Marxism, marginalism, Keynesian direction, neoclassical school, monetarism, neoclassical synthesis, neoliberalism.
Control questions and tasks
1. What does economics study, what are its main functions
and methods of knowledge?
2. What do macro- and microeconomics study? Analyze the problems that micro- and macroeconomics deal with.
3. What is the relationship between economics and jurisprudence?
4. What do you understand by economic laws and categories?
5. What types economic relations Do you know what their essence is?
6. Name the most prominent scientists in the field of economics; Explain what their contribution to the development of this science was.
The task. Compile an economic crossword puzzle using the following terms: economics, political economy, microeconomics, macroeconomics, mesoeconomics, abstraction, analysis, synthesis, induction, deduction, model, relations, law, category, mercantilism, physiocracy, Marxism, marginalism, Keynesianism, monetarism.
Choose the correct answer.
1. What is the most complete and correct definition
subject of economics:
a) economics studies activities that involve production
and exchange of goods;
b) economics studies variables whose behavior
ryh affects the state of the national economy (prices,
production, employment, etc.);
c) economics is the study of how society uses limited
resources needed to produce various goods
and services to meet the needs of its members;
d) economics studies money, banking system and capital.
2. Which of the following is studied by microeconomics, and which
macroeconomics:
a) the level of employment and unemployment in the country;
b) determination of the optimal volume of production of the firm;
c) production costs;
d) financial regulation of the economy.
3. Positive economics studies:
a) what is;
b) what should be;
c) what happened;
d) value judgments.
4. Which of the economic schools first made pre
the method of its analysis is the process of production, and not the sphere of
growth:
a) mercantilism;
b) physiocrats;
c) classical political economy;
d) marginalism.
5. What direction arose in the economic theory of the 20th century:
a) Marxism; B) monetarism;
c) mercantilism;
d) physiocracy.
Horizontally. one. The doctrine of the most general patterns of formation and development of all phenomena of nature, society and thinking. 2. Founder and leader of the Physiocrats in France. 3. School of political economy, which arose in France in the middle of the XVIII century. and became widespread in Italy, Great Britain, Germany and other countries. 4. The doctrine of the methods, techniques of scientific knowledge of reality. 5. Economic theory, investigating the patterns of economic processes based on the use of marginal values. 6. The ancestor of the English classical political economy, which arose and developed in the XVII-XVIII centuries.
Vertically. 7. Prominent English economist who wrote the essay "Principles of Political Economy and taxation". 8. A well-known activist of the Polish and German social democracy, the author of theoretical works on economics. 9. Author of the economic work "Capital". 10. A school of economic theory that arose in England and other countries in the early days of capitalism, when international trade was developing rapidly.
Topic 2. Economic systems and general problems of economic development
2.1. Types of economic systems: market economy,
traditional economy, command economy, mixed economy
2.2. Models of economic systems: American, Swedish, Japanese, Russian models of transition economy
2.3. The main economic problems of society: what to produce? How to produce? For whom to produce?
Reference abstract of the lecture
2.1. Types of economic systems: market economy, traditional economy, command economy, mixed economy
In the last 150-200 years, there have been different types economic systems: two market(market economy of free competition (pure capitalism) and modern market economy (modern capitalism)) and two non-market systems(traditional and administrative-command).
Market economy- this is an economic system based on the principles of free enterprise, a variety of forms of ownership of the means of production, market pricing, contractual relations between economic entities, and limited state intervention in economic activity. It is inherent in socio-economic systems where there are commodity-money relations.
Having emerged many centuries ago, the market economy has reached a high level of development, has become civilized and socially limited. The main features of a market economy are presented in table 2.1.
Table 2.Characteristics of a market economy
The main features of a market economy: | |
1) the basis of the economy is private ownership of the means of pro- | |
production; | |
2) variety of forms of ownership and management; | |
3) free competition; | |
4) market pricing mechanism; | |
5) self-regulation of the market economy; | |
6) contractual relations between economic entities - | |
tami; | |
7) minimum state intervention in the economy | |
Main advantages: | Main disadvantages: |
1) stimulates high production efficiency; 2) fairly distributes income according to the results of work; 3) does not require a large control apparatus, etc. | 1) increases social inequality in society; 2) causes instability in the economy; 3) is indifferent to the damage that business can cause to people and nature, etc. |
Market economy of free competition developed in the 18th century, but a significant part of its elements entered the modern market economy. The main features of the market economy of free competition:
1) private property on economic resources;
2) a market mechanism for regulating the economy based on free competition;
3) a large number of independent sellers and buyers of each product.
Modern market economy (modern capitalism) turned out to be the most flexible, it is able to rearrange
adapt to changing internal and external conditions. Its main features:
1) variety of forms of ownership;
2) development of scientific and technological progress;
3) the active influence of the state on the development of the national economy.
Traditional economy- this is an economic system, it which scientific and technological progress penetrates with great difficulty, tk. conflicts with tradition. It is based on backward technology, widespread manual labor, and a mixed economy. All economic problems are solved in accordance with customs and traditions.
The main features of the traditional economy:
1) private ownership of the means of production and the personal labor of their owners;
2) extremely primitive technology associated with the primary processing of natural resources;
3) communal farming, natural exchange;
4) the predominance of manual labor.
Administrative command economy
(centrally
bath-planned economy) is an economic system,
in which the main economic decisions accepted
the state, which assumes the functions of the organizer of ho
economic activity of society. All economic
And Natural resources are owned by the state
stva. For an administrative-command economy, the character
but centralized directive planning, enterprises
tiya act in accordance with the information brought to them from the "center"
management of scheduled tasks.
The main features of the administrative-command economy:
1) basis - state property;
2) absolutization state property on economic and natural resources;
3) strict centralization in the distribution of economic resources and results economic activity;
4) significant restrictions or prohibitions on private entrepreneurship.
Positive aspects of the administrative-command economy.
1. By concentrating resources, it can ensure the achievement of the most advanced positions in science and technology (the achievements of the USSR in the field of astronautics, nuclear weapons, etc.).
2. The administrative-command economy is able to ensure economic and social stability. Every person is guaranteed a job, stable and constantly increasing wages, free education and medical services, people's confidence in the future, and so on.
3. The administrative-command economy has proved its vitality in critical periods of human history (war, liquidation of devastation, etc.).
Negative aspects of the administrative-command economy.
1. Excludes private ownership of economic resources.
2. Leaves a very narrow framework for free economic initiative, excludes free enterprise.
3. The state fully controls the production and distribution of products, as a result of which free market relationships between individual companies.
mixed economy organically combines the advantages of a market, administrative-command, and even traditional economy and thereby, to a certain extent, eliminates the shortcomings of each of them or mitigate their negative consequences.
mixed economy- type of modern socio-economic system, emerging in developed countries ah the West and some developing countries at the stage of transition to a post-industrial society. The mixed economy has a multistructural character; it is based on private property interacting with state property (20-25%).
Various types of economy and entrepreneurship operate on the basis of various forms of ownership (large, medium, small and individual entrepreneurship; state and municipal enterprises(organizations, institutions)).
A mixed economy is a market system with its inherent social orientation of the economy and society as a whole. The interests of the individual with his multilateral needs are put forward at the center of the country's socio-economic development.
A mixed economy has its own characteristics in different countries and at various stages of development. Thus, the mixed economy in the United States is characterized by the fact that government regulation is represented here to a much lesser extent than in other countries, because. the size of state property is small. The main position in the US economy is occupied by private capital, the development of which is stimulated and regulated government agencies, legal regulations, tax system. Therefore, here, to a lesser extent than in Europe, mixed enterprises are common. Nevertheless, a certain form of public-private enterprise has developed in the United States through a system of government laws.
Russia was practically the first in the world to apply the experience of an administrative-command economy in the form of state socialism. On the present stage Russia is beginning to use the basic elements of a mixed economy.
2.2. Models of economic systems:
American, Swedish, Japanese. Russian model of transition economy
For each economic system characterized by their national models of economic organization. Let's take a look at some of the most famous national models economic systems.
American model It is built on a system of encouraging entrepreneurial activity, developing education and culture, and enriching the most active part of the population. Low-income sections of the population are provided with various benefits and allowances to maintain a minimum standard of living. This model is based on a high level of labor productivity and a mass orientation towards achieving personal success. The problem of social equality does not stand here at all.
Swedish model is characterized by a strong social orientation, focused on reducing wealth inequality through the redistribution of national income in favor of the poorest segments of the population. This model means that the function of production falls on private enterprises operating on a competitive market basis, and the function of providing a high standard of living (including employment, education, social insurance) and many elements of infrastructure (transport, R&D) - on the state.
The main thing for the Swedish model is the social orientation due to high taxation (more than 50% of GNP). The advantage of the Swedish model is the combination of relatively high rates economic growth with a high level of full employment, ensuring the well-being of the population. Unemployment has been reduced to a minimum in the country, differences in the incomes of the population are small, and the level of social security of citizens is high.
Japanese model is characterized by a certain lag in the standard of living of the population (including the level wages) from the growth of labor productivity. Due to this, they achieve a reduction in the cost of production and a sharp increase in its competitiveness in the world market. Such a model is possible only with an exceptionally high development of national self-consciousness, the priority of the interests of society to the detriment of the interests of a particular person, the readiness of the population to make certain sacrifices for the sake of the country's prosperity. Another feature of the Japanese development model is associated with the active role of the state in the modernization of the economy.
The Japanese economic model is characterized by advanced planning and coordination between the government and the private sector. The economic planning of the state is advisory in nature. Plans are government programs that orient and mobilize individual parts of the economy to fulfill national tasks. The Japanese model is characterized by the preservation of its traditions and, at the same time, active borrowing from other countries of everything that is needed for the development of the country.
Russian model of transitional economy. After the long domination of the administrative-command system in the Russian economy in the late 1980s and early 1990s. began the transition to market relations. The main task of the Russian model of transitional economy is the formation of an efficient market economy with a social orientation.
The conditions for the transition to a market economy were unfavorable for Russia. Among them:
1) a high degree of nationalization of the economy;
2) the almost complete absence of a legal private sector with an increase in the shadow economy;
3) the long existence of a non-market economy, which weakened the economic initiative of the majority of the population;
4) the distorted structure of the national economy, where the military-industrial complex played the leading role, and the role of other sectors of the national economy was reduced;
5) non-competitiveness of industries and agriculture.
The main conditions for the formation of a market economy in Russia:
1) development of private entrepreneurship based on private property;
2) creation of a competitive environment for all business entities;
3) an effective state that provides reliable protection of property rights and creates conditions for effective growth;
4) an effective system of social protection of the population;
5) open, competitive in the world market economy
2.3. The main economic problems of society. What to produce? How to produce? For whom to produce?
Any society, no matter how rich or poor it is, decides three basic questions of the economy: what goods and services should be produced, how and for whom. These three fundamental questions of economics are crucial (Figure 2.1).
Which of the goods and services should be produced and in what quantity? An individual can provide himself with the necessary goods and services in various ways: produce them on his own, exchange them for other goods, receive them as a gift. Society as a whole cannot have everything immediately. Because of this, it must decide what it would like to have immediately, what it would be possible to wait to receive, and what to refuse altogether. What needs to be produced at the moment: ice cream or shirts? Small-
How many expensive quality shirts or many cheap ones? Is it necessary to produce less consumer goods, or is it necessary to produce more industrial goods (machinery, machine tools, equipment, etc.), which will increase production and consumption in the future?
Sometimes the choice can be quite difficult. There are underdeveloped countries so poor that the efforts of most of the labor force are spent just to feed AND clothe the population. In such countries, in order to raise the living standards of the population, it is necessary to increase production volumes, but this requires the restructuring of the national economy, the modernization of production.
How should goods and services be produced? There are various options for the production of the entire set of goods, as well as each economic good separately. By whom, from what resources, with the help of what technology should they be produced? Through what organization of production? There is far from one option for building a specific house, school, college, car. The building can be both multi-storey and single-storey, the car can be assembled on a conveyor or manually. Some buildings are built by private individuals, others by the state. The decision to produce cars in one country is made by government agency, in the other - private firms.
For whom should the product be produced? Who will be able to use the goods and services produced in country? Since the quantity of goods and services produced is limited, the problem of their distribution arises. To satisfy all needs, it is necessary to understand the mechanism of product distribution. Who should use these products and services, benefit? Should all members of society receive the same share or not? What should be given priority - intellect or physical strength? Will the sick and the old eat their fill, or will they be left to fend for themselves? Solutions to these problems determine the goals of society, the incentives for its development.
The main economic problems in different socio-economic systems are solved in different ways. For example, in a market economy, all answers to basic economic questions (what, how, for whom) are determined by the market: demand, supply, price, profit, competition.
“What” is decided by solvent demand, by the vote of money. The consumer decides for himself what he is willing to pay money for. The manufacturer himself will strive to satisfy the desires of the consumer.
The "how" is decided by the manufacturer, who seeks to make a big profit. Since price fixing does not depend on him alone, in order to achieve his goal in a competitive environment, the producer must produce and sell as many goods as possible and at a lower price than his competitors.
"For whom" is decided in favor of different groups of consumers, taking into account their incomes.
Brief conclusions
1. In the last one and a half to two centuries, the following systems operated in the world: the market economy of free competition, the modern market economy, the administrative-command and traditional economies. In the last one and a half to two decades, a mixed economy has emerged.
2. Each system has its own national organization models economic development, because countries differ in the level of economic development, social And national conditions.
3. The Russian model of a transitional economy has the following character traits: a powerful public sector, a small share of small and medium-sized businesses, uneven transition to market relations in various sectors and regions of the country, high criminalization of the economy. *
4. The main issues of the economy (what, how, for whom) are solved in different socio-economic systems in different ways, depending on the socio-economic development of the country.
Economic training
Key terms and concepts /d
Economic system; types of economic systems: traditional economy, market economy, administrative-command (centrally planned) economy, mixed economy; models of economic systems: Japanese, South Korean, American, Swedish; Russian transitional economy; basic economic questions: what, how, for what.
Control questions and tasks
1. What types of economic systems do you know and what is their essence?
2. Expand the essence of models of economic systems.
3. What are the features of the Russian model of the transitional economy (as opposed to the administrative-command to the market)?
4. What is the difference between the Japanese model and the South Korean one? What elements of these models can be used in Russia to create a market economy?
5. What are the three main questions of economics that economic theory constantly seeks to answer, and what is their content?
6. How are the three main questions of the economy (what, how, for whom) solved in a market economy and an administrative-command one?
7. What are the features of the development of economic systems at the present stage?
The task. Compile an economic crossword puzzle using the following terms: types, systems, tradition, customs, community, entrepreneurship, property, diversity, self-regulation, inequality, plan, planning, administration, centralization, concentration, state, models.
|
Tests
Choose the correct answer.
1. Feature of Russia in comparison with other countries
with a transitional economy consists of:
a) a high share of the military-industrial complex in the people
nom economy;
b) widespread handicraft production;
c) the availability of free economic zones;
d) competitiveness of industries.
2. We can talk about the predominance of the administrator in the country
rational-command system based on the degree of participation of
states in business processes, when:
a) government intervention in the economy is minimal;
b) the state controls the production of the main part of that
goods and services within the public sector;
c) the state, while maintaining control over some branches of eco
economics, while at the same time encouraging the development of the private sector;
d) all answers are correct.
3. Problems of what, how, for whom to produce may have
relation:
a) only to a society dominated by administrative
mand economy;
b) only to a market economy;
c) only to the traditional economy;
d) to any type of economic systems.
4. When economic problems are solved partially
by the market, partly by the government, this economy:
a) administrative command;
b) market;
c) traditional;
d) mixed.
5. In an administrative-command economy, the question about which goods and services are to be produced are decided by:
a) consumers:
b) manufacturers;
c) the state;
d) foreign investors.
Horizontally. 6. A set of economic sectors that provides society with the necessary material and intangible benefits and services. 7. A process that reveals each individual's share of the wealth created. 8. The use of material wealth by people to meet their needs. 9. The subject to which human needs are directed. 10. Carrier of needs.
Vertically. one. Process of creation useful product 2. The need or lack of something necessary to support the life of a person, social group or society as a whole. 3. A type of expedient activity, the useful result of which is manifested during labor and is associated with the satisfaction of any need. 4. Such a multitude of elements that form a certain unity and integrity due to their stable relationships and connections with each other. 5. The process during which one product is exchanged for another.
Topic 3. Economic needs,
benefits and resources.
Economic Choice
3.1, Economic goods and their classification
|,2, Economic needs and their classification. Engel's law. The Law of Elevation of Needs
jj, Economic resources and their types. The problem of limited resources and their employment
$.4. economic choice. Production possibility frontiers and the law of increasing opportunity costs (lost opportunities)
Reference abstract of the lecture
\.\. Economic benefits and their classification
Every society, regardless of the socio-economic system, faces two main economic problems:
I) the material (economic) needs of people are practically unlimited; ).) economic resources are scarce or limited.
Let's consider these two problems. Any society must meet the needs of people in various economic opagah. In turn, these benefits are produced on the basis of economic resources that are at the disposal of the society and its members.
boons- this is everything that can satisfy the daily (life) needs of people, benefit people, give pleasure (produced goods and services, and also gifts of nature).
Diverse human needs can be combined into groups using one or another classification system.
mi signs. There are many criteria on the basis of which different groups of goods are distinguished:
1) economic benefits- the result of the economic (economic) activities of people, have a price (goods). Economic benefits include benefits that are the object or result of economic activity, i.e. which can be obtained in a limited amount compared to the needs and which can meet the needs of the people. To obtain economic benefits, appropriate economic resources are needed;
2) non-economic goods- the result of donation, presented by nature. Non-economic goods (free goods) are provided by nature without the application of human efforts. These benefits exist in nature freely, in sufficient quantities to fully and permanently satisfy certain human needs (air, water, light, etc.);
3) wealth have a material form (goods: coal, cement, shoes, clothing, food, etc.); include natural gifts of nature (land, forest, water), products of production (buildings, structures, machines, etc.);
4) intangible benefits do not have a material form (services, scientific discoveries, education, etc.), affect the development of human abilities, are created in the non-productive sphere: healthcare, education, art, etc.
There are two groups of intangible goods:
1) domestic- blessings given to man by nature. He develops them in himself of his own free will (voice - singing; musical ear - music lessons; ability to science, etc.);
2) external- this is what the outside world gives to meet needs (reputation, business connections, patronage, etc.). By degree of distance from the final consumption of the good
are divided into consumer (food, clothing, shoes) and resources (factors of production used to produce consumer goods).
By duration of use are divided into long-term, used repeatedly (buildings, books, computers), and short-term, used in the process of one-time consumption (bread, milk, matches, etc.).
So, the means by which needs are satisfied are called goods.
TOPIC 1. ECONOMIC THEORY: SUBJECT,
METHOD, FUNCTIONS
The history of the formation of economic
Theories as sciences.
Main economic schools (theories)
The emergence of knowledge about economic (economic) processes dates back to ancient times and, in essence, is associated with the emergence of human production activities. In primitive communities, such knowledge was the result of collective experience accumulated over millennia and passed down from generation to generation.
The emergence of ancient civilizations (eastern slavery in Egypt, Mesopotamia, Ancient India and China; classical slavery in Ancient Greece and Rome) and the emergence of writing led to the fact that people's views on economic problems began to be reflected in the form of separate elements of legislation (primarily tax legislation). ), in various economic documents (manuals), religious and artistic writings.
However, the formulation of economic knowledge in the form special science began during the period of the disintegration of feudalism and the birth of capitalism. In the first economic works of that time, scientists tried to establish where, who and how creates social wealth, what is its general form, how it is distributed and used by different social groups of society. Later, the subject of close attention of researchers was the problem of assessing the results of production, the basis for exchange, achieving an equilibrium state of production, the role of the state and the market in the development of production, and many others. As certain economic problems arise in society that require their resolution, in the history of the development of economic science in the 17th–20th centuries. there are several schools (trends or theories) that have had a significant impact on the development of the economic life of people.
The initial scientific direction in the field of economics was mercantilism(from Italian - merchant). Its main idea is related to determining the source of people's wealth in the field of trade. The mercantilists considered money in the form of precious metals to be the absolute form of wealth, for the accumulation of which it was necessary to develop, first of all, foreign trade, the extraction of gold and silver. Thomas Man (1551-1641) and Antoine de Montchretien (1575-1621) stood at the origins of mercantilism. The work of A. Montchretien "Treatise of Political Economy", published in 1615, gave the first name to economic science - "political economy", under which it developed from the beginning of the 17th to the end of the 19th centuries. Although the basic ideas of mercantilism were formulated almost 400 years ago, economists and politicians return to them whenever we are talking about the foreign trade balance of the state, about the protectionist measures that governments often take to protect their interests from foreign competitors.
Further theoretical analysis of production led to the emergence of the physiocratic school (from Greek - the power of nature). The teaching of the Physiocrats is an analysis of the production of goods, but limited only to the sphere of agriculture. It was in the production of agricultural products that the Physiocrats saw the source of the wealth of the nation. The reason why production was studied only in part of the agrarian sector of the economy is easy to understand, given that this scientific direction arose in France, where industry was poorly developed. Francois Quesnay (1694–1774) is considered the founder of the school, and Anne Robert Jacques Turgot (1727–1781) is considered its outstanding representative. Modern economy owes to the physiocrats the formulation of questions of proportionality, balance, equilibrium of commodity and cash flows in national economy coming from the economic table developed by F. Quesnay in 1758. And the law of diminishing soil fertility, discovered by A. Turgot, has been the subject of discussions among economists for the last 150 years.
The rapid development of the economy in Europe in the 17th-18th centuries, which more and more clearly showed signs of commodity production based on wage labor, led to the emergence classical school of political economy founded by Adam Smith (1729-1790) and David Ricardo (1772-1823). The classical school overcame the limitations of the physiocratic approaches to the analysis of the economy and established that the sphere of creating social wealth is material production; she laid the foundations of the labor theory of value and determined the role of the market in the development of society; it belongs to the primacy of raising the question of the economic interests of people in production and their embodiment in specific forms of income, as well as the discovery of the principle of self-regulation of the market through free pricing (the principle of A. Smith's "invisible hand"). A. Smith's main work "A Study on the Nature and Causes of the Wealth of Nations" was published in 1776. Like more than 200 years ago, the problems studied by A. Smith remain relevant for many countries of the world, and primarily for those that are moving to a market economy .
The ideas of the founders of the classical school of political economy covered the entire spectrum of economic relations that existed by the beginning of the 19th century, but the degree of elaboration of many issues was not and could not be exhaustive. A number of provisions of the labor theory of value were contradictory, which subsequently led to the emergence of various trends within the classical school.
One of these trends has been factor theory, founded by Jean Baptiste Say (1767–1832). The core of this theory was the position according to which the creator of wealth (and value) is not only labor, but also capital, and land, and enterprise; all these factors of production are limited and require rational use. Elements of the theory of factors of production are widely used by modern economic theory.
The founder of another direction was Karl Marx (1818-1883) and his colleague Friedrich Engels (1820-1895), who created the political economy of labor. The main ideas of Marxism are formulated in "Capital" by K. Marx, the first volume of which was published in 1867. Within the framework of these ideas, K. Marx developed the doctrine of the change of social formations, of the dual nature of labor that creates goods; deepened the labor theory of value of A. Smith and D. Ricardo, created a unified theory of goods and surplus value, formulated a number of economic laws. Marxism established a class approach in science: the interests of the proletariat are opposed to the interests of the bourgeoisie, and the dictatorship of the proletariat must take the dominant position. He enriched science with a social analysis of economic relations. Economic views K. Marx had a significant impact on the entire further process of development of economic theory, and political conclusions were largely distorted and did not find confirmation in practice.
In the second half of the XIX century. in economics there was a so-called "marginal revolution", associated with the emergence of the Austrian school of "marginal utility". marginalism- this is an economic theory that considers the economy as a system of interrelated economic entities; it explains the distribution of scarce resources and the methods of rational management on the basis of marginal values (hence the name of the school: marginalism in English - additional, marginal). This school expressed the anti-Marxist view of the heritage of the classical school; it is inherent in the desire to explore the market economy from a neutral social position, focusing not on the socio-economic causes and consequences of economic activity, but on their functional dependencies. If K. Marx used the labor theory of value of A. Smith and D. Ricardo to substantiate the theory of surplus value (the theory of exploitation), then marginalism developed its own theory - marginal utility, the social content of which is minimized. The main developers of the theory of marginal utility were the Austrian scientists Karl Menger (1840-1921), Friedrich von Wieser (1851-1926), Eugene von Böhm-Bawerk (1851-1914). Marginalism, exploring functional dependencies, enriched economic theory with a wide application of the mathematical apparatus - William Stanley Jevons (1835–1882), Leon Marie Walras (1834–1910).
The refusal of marginalists to analyze the production process from class positions has confronted scientists with the problem of finding a balanced approach to the analysis of the economy (production, distribution and exchange) on a non-Marxist basis. In the course of such searches, a neoclassical theory founded by the English economist Alfred Marshall (1842-1924). The neoclassical school provided a link between marginalism and the analysis of commodity production based on the cost theory of D. Ricardo (hence the origin of the name of this school). Using the supply-demand mechanism and market pricing, A. Marshall, on the basis of their interaction, managed to combine both production and exchange in a single analysis without opposing them to each other. As a result, a theoretical mechanism for the functioning of a competitive market was developed, which today is the most important component of economic theory. The name of A. Marshall is also associated with the change in the name of economic science in late XIX in. from "political economy" to "economics", although "economics" is not only theory, but also its combination with practice.
The emergence and strengthening of the dominance of monopolies at the beginning of the 20th century, the strengthening of the role of the state in the economy posed a number of new problems for economic science, in the course of resolving which schools of institutional economics and Keynesianism arose.
institutionalism- a scientific school that arose at the beginning of the twentieth century. and considering economic processes not only from the standpoint of the market mechanism, but also from various social institutions, which include corporations, trade unions, the state, as well as national characteristics, traditions, legal norms, etc. Institutionalism is, in a certain sense, an alternative to the neoclassical direction of development economic thought. If neoclassicists proceed from the thesis about the perfection of the market mechanism for regulating the economy, then institutionalists consider not only material factors, but also spiritual ones - legal, moral, social factors to be the driving force of the economy, considering them in historical development. The founders of this school were Thorsten Veblen (1857–1929) and Wesley Mitchell (1874–1948). The merit of institutionalism is the return of economic theory to critical analysis. social life a society that had previously been monopolized by Marxism.
In the 30s of the twentieth century. based on the ideas of the English economist John Maynard Keynes (1883-1946) formed theory of state regulation of the economy(Keynesianism). Taking into account the experience of the Great Economic Depression of 1929–1933, Keynes developed the theory of market regulation through government intervention in the economy. Using the teachings of Keynes, the economy of developed capitalist countries developed successfully until the early 80s of the twentieth century.
Economic theory is a dynamically developing science. In recent decades, a number of existing areas have received significant development either as a combination of ideas already known individually, or as an offshoot of former economic schools, or as their latest interpretation. The latest trends include: theory of post-industrial society and convergence- John Kenneth Galbraith (1909-1993); monetarism- Milton Friedman (b. 1912); economic liberalism- Friedrich August von Hayek (1899-1984); theory of the social market economy– Ludwig Erhard (1897–1977); input-output model- Vasily Vasilyevich Leontiev (1906-1999); rational expectations theory- Robert Lucas (b. 1937); theory of neoclassical synthesis- John Richard Hicks (1904-1989) and Paul Samuelson (b. 1915).
From a brief historical overview of the process of formation and development of economic science, it is quite clear that the object of its study is production. But production is the object of study of many disciplines: economic, technical, social, etc. In order to single out the subject of this or that science in this object, it is necessary to consider the structure of production and thus determine the subject of economic theory.
The history of the emergence and development of economic science is replete with numerous dramatic events, scientific revolutions and periods of calm. Interest in economic problems arose even in the ancient societies of Mesopotamia, India, China, Egypt, Greece, and Rome. The ideas of ancient societies about the economic structure were integral part various religious or philosophical systems. Already in the Bible one can find the rules of the economic life of the ancient society, the concepts of justice, property, the principles of distribution of the produced product. You can read about what value is and what it depends on in the works of the ancient Greek philosopher Aristotle. At the same time, how the science of economics took shape relatively late, somewhere at the turn of the 17th-18th centuries. This happened at a time when capitalism arose and rapidly developed in Europe.
The roots of economic science go back to ancient times. The first ideas about economics as a science are associated with the name of Plato, Aristotle ( Ancient Greece), Lucretia Cara and Pliny (Rome). The term "economy" was first proposed by Xenophon. This term comes from oikos (house) and nomos (rule) - the rule of conduct household
Aristotle distinguishes between two types of economic activity: savings- farming for self-sufficiency and chrematistics- farming for the purpose of enrichment, considering the first type of activity to be correct.
The foundations of economic theory were laid by Adam Smith (1723-1790), David Riccardo (1772-1823). At present, fundamental economics is most commonly referred to as economic theory. Therefore, the economy, on the one hand, is an economy, economic activity people, and on the other hand, the science of the laws of housekeeping in society.
Initially, economics developed under the name "political economy" (Political Economy). This term was first introduced in 1615 by the Frenchman Antoine de Montchretien. The name "political economy" comes from the Greek words "politikos", which means state, public, "oikos" - household, house, "nomos" - rule, law. In the late 19th and early 20th centuries, this name was increasingly replaced by the term "economic theory" (Economics). It was first introduced in 1890 by the famous English economist Alfred Marshall. During the four centuries of its existence, economic science has developed rapidly. During this time, many schools and directions of economic theory have appeared. (The history of the development of economic science is studied in full detail in the special course "History of Economic Thought".) In this section, very summary the history of the development of economic thought, while only some of the most important schools of economic theory stand out (see table 1).
Table 1 - The most important schools of economic theory
Major schools | The largest representatives | Major writings |
Mercantilism | Thomas Man (1571-1641) | "The Wealth of England in Foreign Trade" (1664) |
Physiocrats | François Quesnay (1694-1774) | "Economic Table" (1758) |
Classical political economy | Adam Smith (1723-1790) | "Studies on the Nature and Causes of the Wealth of Nations" (1776) |
Marxism | Karl Marx (1818-1883) | "Capital" (1867) |
Neoclassical economic theory | Alfred Marshall (1842-1924) | "Principles of Economic Theory" (1890) |
Keynesianism | John Maynard Keynes (1883-1946) | "The General Theory of Employment, Interest and Money" (1936) |
institutionalism | John Kenneth Galbraith (1908-2006) | "New Industrial Society" (1961) |
Monetarism | Milton Friedman (1912-2006) | "Capitalism and Freedom" (1962) |
The first school of economic theory (political economy) was mercantilism. Word "mercantilism" came from the Italian "mercante" - merchant, merchant. This direction of economic thought was widespread in the countries of Western and Eastern Europe in the 16th-18th centuries. The ideas of mercantilism were also known in Russia; Peter I pursued an active mercantilist economic policy.
The formation of the economic views of the mercantilists took place in the era of the creation of the world market, the emergence and development of capitalism in Europe. Great geographical discoveries have already been completed, colonial wars were going on, colonial empires were flourishing. The development of world trade led to the strengthening of the role of the merchant class. Mercantilism became the spokesman for the interests of this stratum of society.
One of the most famous representatives of mercantilism was the English economist Thomas Mun (1571-1641). Like all mercantilists, he was a practical man, a man of action, a board member of the East India Company, a member of the government trade committee. Thomas Mun outlined the main ideas in his main work "The Wealth of England in Foreign Trade, or the Balance of Our Foreign Trade as the Principle of Our Wealth" (published in 1664).
The main object of observation of the mercantilists was foreign trade, the movement of goods and money between countries. In their opinion, foreign trade was the most important source of the country's wealth. They identified wealth itself with gold and treasures. In order for wealth to flow into the country, a constant excess of exports over imports is necessary, in other words, a trade surplus is necessary. The state must regulate foreign trade in order to ensure the flow of gold and silver into the country, pursue a policy of protecting its foreign trade interests, that is, a policy protectionism. In particular, to establish high customs duties on imported goods, to stimulate the export of local products.
In the middle of the 18th century, another well-known economic school, the school of physiocrats, developed in France. "Physiocracy" literally means "power of nature" (from the Greek "physis" - nature and "kratos" - strength, power). Representatives of the school was a group of scholars, the most famous of which was François Quesnay (1694-1774). A physician by training and profession, he served as court physician under Louis XV. Only at the age of 60 did he begin to deal with economic problems. World fame F. Quesnay brought his most important work "Economic Table" (1758).
Figure 5 - Original rendering of the reproduction process, 1759.
The doctrine of the Physiocrats arose as a reaction to mercantilism. Criticizing the mercantilists, they believed that the government should pay attention not to trade and the accumulation of money, but above all to the development of agriculture, in which the physiocrats saw a source of wealth. Only labor in agriculture is productive. The "net income" arising from agriculture was considered by them as a gift of nature. At that time in France, agriculture was main area national economy. At the same time, the Physiocrats considered industry to be an unproductive branch.
In his Economic Table, François Quesnay laid the foundations for the theory of social reproduction. He tried to establish proportions between the various parts of the social product, considered the exchange between social classes. In essence, it was the first macroeconomic model.
The industrial revolution at the end of the 18th - beginning of the 19th century led to the creation of the material and technical base of capitalism, the development of machine production. Industry has become the dominant sector of the economy. The economic thought of this period sees the main source of wealth in production in general, and not only in agriculture, as the physiocrats represented. The new trend in economic thought was later called classical political economy. Classical political economy, formed at the end of the 18th century, was the dominant school in economics for most of the 19th century.
The most famous and prominent representatives of this trend were the Scottish scientist Adam Smith (1723-1790) and the Englishman David Ricardo (1772-1823). A. Smith headed the Department of Moral Philosophy at the University of Glasgow, then worked as the Chief Customs Commissioner for Scotland. He was the author of many works on economics and philosophy. But his main world-famous work was An Inquiry into the Nature and Causes of the Wealth of Nations (1776). In this work, A. Smith gives a comprehensive description of the economic system of society, considers the theory of value, the theory of income distribution, the theory of capital and its accumulation, the economic policy of the state, public finances, and presents a detailed criticism of mercantilism. He managed to connect most of the existing directions economic research.
All the economic phenomena considered by A. Smith are based on the labor theory of value. The value of a commodity is created by labor, regardless of the branch of production. The labor embodied in commodities is the basis for exchange. The price of a commodity is determined by the labor costs of its production, as well as by the ratio of supply and demand for the commodity.
A. Smith gave a detailed analysis of the main incomes of society: profits, wages and ground rent, and defined the value of the social product as the sum of society's incomes. The social product embodies the wealth of the country. The growth of wealth depends on the growth of labor productivity and on the share of the population engaged in productive labor. In turn, labor productivity largely depends on the division of labor and its specialization.
When considering economic phenomena and processes, the classics of political economy adhered to a certain system of general premises. Chief among these were the concept of "economic man" and economic liberalism(economic freedom). They considered a person only from the point of view of economic activity, where there is the only incentive for behavior - the desire for one's own benefit. Morality, culture, religion, customs, politics are not taken into account.
The idea of economic liberalism was based on the idea that economic laws act like the laws of nature. As a result of their action, “natural harmony” is spontaneously established in society. The state does not need to interfere with the operation of economic laws. The principle of economic liberalism and free trade is expressed by the famous slogan "Laissez faire, laissez passer" In other words, it is the principle of non-intervention of the state in economic activity. The expression has become a symbol of classical economic theory. In foreign trade, economic liberalism means free trade without restrictions on exports and imports. This foreign economic policy is called free trade(from English free trade - free trade).
According to the classics, economic laws and competition act like an "invisible hand". As a result, resources are redistributed for efficient (full) use, prices for goods and resources change rapidly, and a balance is established between supply and demand. At the same time, the development of capitalism led to periodic economic crises, overproduction of goods, and unemployment. The incomes of the rich increased, but the bulk of the population lived in poverty. All this did not fit into the framework of classical economic theory and required explanations. And on the basis of the classical theory, new schools arise, revising the conclusions of the classics.
The most famous economic school that arose in the middle of the XIX century. and became widespread in the second half of the 19th and 20th centuries, was Marxism.
This branch of economic theory was named after its founder, Karl Marx (1818-1883). He was born in Germany, the son of a lawyer, studied at the Universities of Bonn and Berlin, and had a Ph.D. Most of his life, K. Marx lived in exile, in Paris and London. His main work was Capital, volume I of which was published in 1867. Volumes II and III of Capital were prepared for publication by F. Engels (1885, 1894), who was a friend of K. Marx and a well-known Marxist theorist.
In his economic doctrine, K. Marx relied on the works of the classics of political economy. At the same time, he criticized the classical economic theory, in many respects supplemented and developed the theoretical positions of A. Smith and D. Ricardo. K. Marx created an all-encompassing system of categories and laws of the capitalist economic system. Unlike the classics, he showed the transient nature of this system, revealed the internal contradictions of capitalism, and proved the inevitability of replacing capitalism with socialism and communism. Many provisions of Marxism have been and are being criticized, but few deny the historical role of Marxism in the development of economic theory.
Marxist economic theory emphasizes the decisive role of socio-economic relations in the economic system. Therefore, the immediate subject of research is relations of production- the relations that develop between people about the production, distribution, exchange and consumption of goods. The basis of production relations are the relations of ownership of the means of production. The organization of production, distribution, and the wealth of various social classes depend on property relations.
K. Marx developed labor theory of value. What was new in the theory of value was the discovery of the dual character of labor embodied in a commodity. According to Marx, concrete labor creates the use value of a commodity, abstract labor creates value, and the latter underlies the price of a commodity. Abstract labor is labor in the physiological sense, labor as an expenditure of physical and mental energy in general.
On the basis of the labor theory of value, Marx created the theory surplus value, explaining the main source of profit and showing the mechanism of exploitation of employees by the owners of capital. The source of profit is surplus value, that is, the value created by the unpaid labor of workers. He also considered the laws of capitalist social reproduction, in particular, explained the origin of cyclical economic crises. The ultimate cause of these crises is the spontaneous nature of development, due to the dominance of private ownership of the means of production. But he made a real revolution in the method of research. K. Marx applied the dialectical method in the analysis of economic processes, thereby creating the method of materialistic dialectics.
In the second half of the XIX century. along with Marxism arises and develops neoclassical economics. Of all its numerous representatives, the most famous was the English scientist Alfred Marshall (1842-1924). He was a professor and chair of political economy at the University of Cambridge. A. Marshall summarized the results of new economic research in the fundamental work "Principles of Economic Theory" (1890).
In his works, A. Marshall relied both on the ideas of classical theory and on the ideas of marginalism. marginalism(from English marginal - limiting, extreme) is a trend in economic theory that arose in the second half of the 19th century. Marginal economists in their research used limit values, such as marginal utility (utility of the last, additional unit of good), marginal productivity (production produced by the last hired worker).
These concepts were used by them in the theory of prices, the theory of wages and in explaining many other economic processes and phenomena.
In his theory of price, A. Marshall relies on the concepts of supply and demand. The price of a good is determined by the ratio of supply and demand. The demand for a good is based on subjective assessments of the marginal utility of the good by consumers (buyers). The supply of a good is based on the cost of production. The producer cannot sell at a price that does not cover his production costs. If the classical economic theory considered the formation of prices from the standpoint of the producer, then the neoclassical theory considers pricing both from the standpoint of the consumer (demand) and from the standpoint of the producer (supply).
Neoclassical economic theory, like the classics, proceeds from the principle of economic liberalism, the principle of free competition. But in their studies, neoclassicists place more emphasis on the study of applied practical problems, use quantitative analysis and mathematics to a greater extent than qualitative (meaningful, cause-and-effect). The greatest attention is paid to the problems of efficient use of limited resources at the microeconomic level, at the level of the enterprise and household. Neoclassical economic theory is one of the foundations of many areas of modern economic thought.
Keynesianism as a direction of economic theory arose in the 30s. XX century, during the Great Depression - the global economic crisis of 1929-1933. and the long depression that followed. The name of this direction is associated with the name of John Maynard Keynes (1883-1946), the famous English economist, statesman and publicist. He was a graduate of Cambridge University, a student of A. Marshall and A. Pigou. The main work of J. M. Keynes "The General Theory of Employment, Interest and Money" was first published in 1936.
J. Keynes and his followers focused on the analysis of macroeconomic problems. They study the most important macroeconomic indicators and the relationship between them, in particular, the relationship between investment and national income, between government spending and national production, between inflation and unemployment.
Essentially, J.M. Keynes was the founder of modern macroeconomics.
The new macroeconomic school criticizes classical and neoclassical economic theory for ignoring the problems of crises, unemployment and inflation. Moreover, the Keynesians abandon such premises of the former theory as the separate existence of markets for goods, labor and money, the mandatory equality of savings and investment, price flexibility, the principle of laissez faire, that is, the principle of non-intervention of the state in the economy.
The market economy, argues Keynes, cannot be self-regulating, it cannot provide "effective demand" sufficient to fully utilize the resources available in society. To stimulate aggregate demand, and hence production, it is necessary state regulation economy through fiscal and monetary policy. For example, during a recession, the government should increase government spending and reduce taxes. For several decades of the 20th century, starting from the late 1930s. and until the mid-1970s, Keynesianism was the mainstream, both in theory and in economic policy developed countries of the West.
Along with Keynesianism, one of the most widespread schools of modern economic thought is institutionalism. As a trend, institutionalism arose at the turn of the 19th-20th centuries. in the US, it has since spread around the world. A more accurate name for institutionalism is the institutional sociological school
A feature of institutionalism as a current of economic thought is the use of the concepts of "institution" (custom, routine) and "institution" (an order enshrined in the form of law, institution) for the analysis of economic phenomena and processes. The institutions that are part of the economy and influence economic behavior are the family, the state, moral standards, law, trade unions, corporations, and other social phenomena. Institutionalism considers in theory not an "economic man", but a versatile personality. Just like Keynesianism, institutionalists reject the premise that the market economy is capable of self-regulation. Within the framework of this direction, the concepts of the modern economic system as a “post-industrial”, “information” society are being developed.
One of the most famous contemporary institutionalists is American economist John Kenneth Galbraith (b. 1909). Harvard professor, statesman, ambassador to India, Galbraith is also known for his economic works, each of which was a bestseller not only in academic circles, but also among the educated part of the public in general. One of his most important works is The New Industrial Society (1961).
The modern market economy, the "new industrial society" in Galbraith's terminology, is dominated by large corporations producing sophisticated technology. And in corporations, the real power is held not by the owners, but by the “technostructure”, which is a layer of specialists in technology, management, finance, scientists, and designers. The technostructure plans the work of the corporation for years to come. And planning, in turn, requires stability.
When planning, production and marketing are carried out according to plan, and the role of entrepreneurship, competition, the market element is reduced to a minimum, if not completely disappears. Business goals are changing. The technostructure is not interested in maximizing profits, it is interested in the company developing steadily and having a strong position in the market. Institutionalism is in many ways close to Keynesianism.
Monetarism as one of the most important areas of modern economic thought, it is the opponent and main opponent of both Keynesianism and institutionalism. The name of the direction comes from the Latin "coin" - currency unit, money. Monetarism originated in the United States and began to spread in the 50s and 60s. 20th century Its main ideologist is Milton Friedman (1912-2006), a professor at the University of Chicago, a former adviser to the American president on economic issues. He outlined his economic views in several works, the most famous of which is Capitalism and Freedom (1962).
The most important feature of monetarism as an economic school is that its supporters pay the main attention to the monetary factor, the amount of money in circulation. The slogan of the monetarists is: “Money matters” (“Money matters”). In their opinion, the money supply has a decisive influence on economic development, from growth rates money supply depends on the growth of national income.
Monetarism continues the traditions of the classical and neoclassical schools of economics. In their theory, they rely on such provisions of the classics as economic liberalism, minimal state intervention in the economy, the need for free competition, and price flexibility when supply and demand change. The influence of monetarism in the world increased in the 1970s and 1980s, when inflation and the budget deficit became the main problems of the economy. The monetarists associate the emergence of these problems with the theory and practice of Keynesianism, with state regulation of the economy.
The brief description of the development of economic theory given in this section is, of course, not exhaustive. But this brief introduction in the history of economic thought introduces you closer to economic problems, gives you the most general idea of some terms and concepts that will be useful in further acquaintance with micro- and macroeconomics.
Similar information.
The formation of society is associated with the realization of material and spiritual human needs. Satisfaction of needs is the main motive for the participation of people in industrial relations and the foundation of economic development.
The Importance of Needs
Human needs motivate people to action. Needs exist together with the means by which they are satisfied. These "tools" are formed directly in the workflow. Labor is a purposeful activity. It manifests itself primarily in the ability of a person to create objects and means for material production. In the formation of property, the central link is the appropriation of labor resources.
Economic interest
It arises on the basis of a system of diverse interests - the most important motive When improving production, the number of needs increases. They, in turn, contribute to the further development of the economy. The formation of needs, among other things, depends on subjective factors. These primarily include the tastes and inclinations of a person, the spiritual needs of the individual, physiological and psychological characteristics, as well as folk customs and habits. In this regard, conditions are formed under which a person is forced to establish the value of services or goods.
Production activity
It is carried out with the help of the economic system. The latter is a specific social organizational mechanism. Due to the limited resources available, it is impossible to meet the needs of all members of society. Nevertheless, civilization strives for this goal as an ideal. This forces humanity to develop a variety of means that would make it possible to realize this task. Economic theory is one such tool.
Source elements
The first signs are found in the writings of the thinkers of Ancient Egypt and in ancient Indian treatises. Valuable commandments concerning management are also present in the Bible. As a scientific direction, economic theory began to take shape more clearly in the works of ancient Greek philosophers. The first ideas were formulated by Xenophon, Aristotle, Plato. It was they who introduced the term "economy", denoting the doctrine of creating and maintaining a household in slave-owning conditions. This direction was based on elements of natural labor activity and the market.
Development of economic schools
The works of ancient Greek thinkers became the foundation for the further formation of the doctrine. It subsequently split into several branches. As a result, the following main economic schools were formed:
General characteristics of the traditional direction
The main economic schools were formed under the influence of different views of different scientists. An outstanding role in the development of traditional teaching was played by such figures as F. Quesnay, W. Petit, A. Smith, D. Ricardo, D. S. Mil, Jean-Baptiste Say. With different views, they were united by several common ideas, on the basis of which the classical economic school was formed. First of all, all these authors were supporters of economic liberalism. Its essence is often expressed by the phrase laissez faire, which literally means "leave to do". The principle of this political demand was formulated by the Physiocrats. The idea was to provide full personality and competition, unrestricted by government interference. Both of these economic schools considered a person as an "economic entity". The desire of the individual to increase his wealth contributes to an increase in that of the whole society. An automatic self-tuning mechanism (the “invisible hand,” as Smith called it) guides the disparate actions of consumers and producers so that a long-term equilibrium is established in the entire system. At the same time, the continued existence of underproduction, overproduction and unemployment in it becomes impossible. The authors of these ideas made a significant contribution to the formation of the school of economic science. Subsequently, they were used and improved. Many economic schools have made their own additions to these ideas. As a result, systems were formed that corresponded to one or another stage in the formation of society. Thus arose, for example, the socio-economic school.
Smith's Idea
On the basis of the school of economic theory, of which this figure was a supporter, the concept of labor value was developed. Smith and his followers believed that the formation of capital is carried out not only through agriculture. In this process, the work of other segments of the population, of the entire nation as a whole, is of particular importance. Proponents of this school of economic theory argued that by participating in the production process, workers at all levels enter into cooperation, collaborate, which, in turn, excludes any distinction between productive and "sterile" activities. Such interaction is most effective when carried out in the form of a market exchange of goods.
Schools of Economics: Mercantilism and the Physiocrats
These teachings, as described above, existed in the 18th and 19th centuries. These economic schools had different views on the production of social wealth. Thus, mercantilism adhered to the idea that the base is trade. In order to increase the amount of public wealth, the government must in every way support domestic sellers and manufacturers, hindering the activities of foreign ones. Physiocrats believed that economic basis constitutes agriculture. They divided society into three classes: owners, producers and barren. As part of this exercise, tables were formulated, which, in turn, became the foundation for the formation of a model of intersectoral equilibrium.
Other directions of the 18-19 centuries
Marginalism is Austrian school adhering to the idea of marginal utility. The leading figure in this trend was Representatives of this school explained the concept of "cost" from the standpoint of consumer psychology. They tried to base the exchange not on production costs, but on a subjective assessment of the usefulness of goods sold and purchased. The neoclassical school, represented by Alfred Marshall, developed the concept of functional relationships. A supporter of the mathematical direction was He characterized the market economy as a structure that is able to achieve equilibrium through the interaction of supply and demand. He developed the concept of the overall market balance.
Keynesianism and institutionalists
Keynes based his ideas on the assessment of the performance of the entire economic system as a whole. In his opinion, the structure of the market is not initially balanced. In this regard, he advocated strict state regulation of trade. Proponents of institutionalism, Earhart and Galbraith, believed that the analysis of an economic entity is impossible without taking into account the formation of the environment. They proposed a comprehensive study of the economic system in the dynamics of evolution.
Marxism
This direction was based on the theory and principle of the planned formation of the national economy. The leading figure in the doctrine was Karl Marx. His work was subsequently developed in the writings of Plekhanov, Engels, Lenin and other followers. Some of the propositions put forward by Marx were revised by the "revisionists". These included, in particular, such figures as Bernstein, Sombart, Tugan-Baranovsky and others. In the Soviet years, Marxism acted as the basis and the only legal scientific direction.
Modern Russia: HSE
The Higher Economic School is a research institute that carries out design, educational, social and cultural, expert and analytical activities. It is based on international standards. HSE, acting as part of the academic community, considers involvement in university global interaction, partnership with foreign institutions, a key element of its practice. As a Russian university, the institution works for the benefit of the country and its population.
The main directions of the HSE are empirical and theoretical research, as well as the dissemination of knowledge. Teaching at the university is not limited to fundamental disciplines.