History of Economics Is a Term Paper

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These methods are then examined with respect to future events using empirical observations and statistical tools. (History of Economics Society, 25)

It has to be accepted that such a method has been used to arrive at various conclusions. A lot of dedication is required by thinkers to derive the facts out of the information available. This concept of economics is not drawn out of nothing, but it has been derived from facts, and scientists have toiled to put together the casual details into formal approaches. Formal methods reduce the details in a systematic manner and so this is preferred than the informal method. However those is favor of the scientific method were against the formal method and argued that formal methods were not reliable since it was not sure whether the important aspects of the fact would be retained while reducing the information available. (History of Economics Society, 25)

History of economics has always raised debates whether economics is a science that maintains the importance of the information even if it is reduced. The debate is between the mathematical side of information and the non-mathematical ancient method and the difference between this is creating a divide in the heterodox / mainstream methods. Complexity is related to mathematics and requires the reduction of data. This kind of reduction results in a non-determined answer. In short, it may be said that mathematics cannot support the formation of economics effectively if it is used alone. With the invention of modern gadgets like computer, the complex methods of deriving data related to economics has become easy. Hence technology has taken over the task of solving complex economic data into simpler ones which provides an insight into any kind of issues. The difference between complex economics and standard economics is the method by which the details are derived. Standard economics is related to simple observable details which has solution for economic problems. This can also be used to analyze various types of cases that arise from time to time. Complexity method can be used to find varying types of data with no targeted solution and depends on the computer to find the most suitable approach that can be used to compress a data. A random collection of data can be fixed into an approach using this method though it is of no specific use to economics. (History of Economics Society, 25)

Inductive reasoning is the method of observing data using empirical methods and statistical observation is the process of using the inductive approach. This method however has some drawbacks. Here analysis of information may be partial or the decision of the observer will be partial. Hence this method requires precaution to reach the right decision. Deductive reasoning begins with common schemes of logic wherein the decision is concluded by deducting information about a particular incident. This is otherwise known as rationalism. Abductive reasoning is the method where a hypothesis is created. This method is identical to induction. Abduction is a casual method which involves intuition, analysis, deductive reasoning, knowledge and leads to the formation of hypotheses which can be right or wrong since the reasoning factor is less in this method. (Chapter 2: A Problem of Knowing)

Western culture has accounted for a number of methods which contribute to the structure of knowing. These methods were formed by several aspects. The method of knowing can be compared to a technology. While economists analyze the past methods, new method of knowing was formed. Methods that are related to future forecasts gives good results in conformity to or a continuous approach in connection with a society and this is more likely to be recognized and incorporated by the social system. The method used to inform the approach and ideas will impact the formation of the ideas of knowing. Robert Ornstein and James Burke have given a short note on the development of the Western scheme of knowing in the Axemaker's Gift. Their findings revealed that every step taken towards development to make the society grow to a high standard or security resulted in the progress of the world. (Chapter 2: A Problem of Knowing)

With the developments in the world, there will be a corresponding change in the thought of people. Bronowski states that the schemes developed by thinkers in the medieval period have resulted in the formation of a hierarchy to the scheme of order. The theory of probability gives the approach by which complicated information can be explained. The onset of Western Culture is usually related to the Greeks. Their involvement towards the evolution of economic ideas and the creation of a scheme to learn knowledge is referred to as the approach towards an insight into knowing. The hypothesis of economics and specifically the in depth observation of trivial ideas to explain and observe various economic methodology were contributed by the Greeks. It is a skill to transform trivial ideas into various useful patterns of observation. These patterns are employed to record information. (Chapter 2: A Problem of Knowing)

The contribution of Pythagorus, Archimedes and Euclid in the field of mathematics lead to the formation of tools to record information. Plato has also made reasonable contributions to economics and the science of knowing. He was a student of the great thinker Socrates. He has created an impact on the scheme of knowing. His hypotheses on economics state that the visible world was a vague picture of the invisible world and the static forms. Later, Plato also stated that the world should be analyzed through the use of intelligence and not by the eyes alone. Plato worked towards a theory that connected economics, law, ethics, arts and politics. Aristotle was a student of Plato and the teacher of Alexander the Great. His theories have created considerable impact on the Western Economic thought. (Chapter 2: A Problem of Knowing)

Syllogistic theory is the most significant aspect given by Aristotle. It is observed as a valid reducing scheme with no unwanted conditions. It is a scheme of norms that speaks about reasoning. This system speaks about the sequence of events and its outcomes on economics. Here man is considered to be a coherent being and consumers are substantiated as man and the final theory is that all consumers are coherent. In the beginning of the medieval period, Saint Augustine and his disciples created an interest to imbibe secularism in the society. They also advocated the preservation of knowledge and information which lead to the maintenance of power. It was later said that all information and knowledge is acquired from the nature and this can be deducted into various parts for further analysis. This method is employed by economics while using Utilitarianism to the microeconomic approach. (Chapter 2: A Problem of Knowing)

After the period of Saint Augustine, the Franciscan movement was started by St. Francis of Assissi that took measures to eradicate the poor and put in place the idea of brotherhood. At this point of time there was a mixture of religion with economics. Saint Thomas advocated that private assets can be held by people and that it would contribute towards the progress of the society, though he pointed out that the use of private business to make lucrative profits would be regarded as a sin. He also prophesized that assets held by a person should be available for general use in times of need and he even went on to justify that robbery if conducted was due to utmost requirement. Private enterprises also came under question. The question was with regard to the profits earned by a businessman from changing the cost of goods. The Scholastic approach was in favor of such profit and justified saying that business was not conducted for such a profit and that it was to meet the cost of the work done. Further, the business was carried on to provide assistance and meet the common welfare of the people. (the History of Economic Thought)

According to the Salamanca School of economic thought, the wish of God was to put men at work worldwide where they transact business and familiarize among them to reach the ultimate goal of brotherhood. This school of thought was however against the Mercantilist thought which encouraged war for the sake of business. However, Aristotle's theory stood for justifiable price of goods with respect to its actual value which would assist humanity. The rules of Roman economics were friendlier. It states that the price was justifiable if the buyer agreed to pay that price for the goods. This rule of Romans, however, did emphasize on the value of the goods. The utility of a product was also a much debated issue. Justum pretium which means just price of a product was further explained as the price expected by a person on purchase and it is to be the price offered to a buyer. This theory was stated by the Golden Rule. (the History of Economic Thought)…[continue]

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