Download e-book for iPad: Economic doctrine and method: An historical Sketch by Joseph Alois Schumpeter

By Joseph Alois Schumpeter

Highway survey of monetary proposal from the times of Aristotle to the beginnings of recent occasions, it strains the advance of the belief of the round stream of monetary forces and covers the most theorems of the classical economists.

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Clearly bearing in mind the state of affairs in our field at about 1750 we realize that we feel ourselves nowhere else in economic literature so near to creative genius as when we regard the conception of this work alone which, as Madame Pompadour correctly predicted, would appear to most critics at best as a harmless intellectual toy. The zeal of the disciples tried to counteract the complete lack of understanding with which the Tableau' was met. Above all we THE CIRCULAR FLOW OF ECONOMIC LIFE 45 must mention here Le Trosne (De Vordre social, 1777), Baudeau {Premiere introduction à laphilosophie économique, 1771), in the third place Lemercier de la Riviere (JOordre naturel et essential des sociétés politiques, 1767),finally,Dupont de Nemours (Physiocratie ou constitution naturelle du gouvernement leplus avantaguex au genre humain, 1767).

It is impossible to give here a more detailed account of what happened to the Physiocrats and their writings. 2. The physiocratic doctrine, as has already been stated, is a branch of the large family of systems of Natural Law and must be approached in very much the same way as the latter. It intended to be not merely an economic theory but also a general sociology which consisted, however, of economic material and which placed economic considerations into the foreground. Nevertheless we propose to limit ourselves to the economic theory proper as it was outlined by the Physiocrats.

Labriola, Doctrine economiche di F. Quesnay, 1897. In addition to the edition of the physiocratic works by Guilìaumin we have at present the edition by Geuthner. THE CIRCULAR FLOW OF ECONOMIC LIFE 43 of view—for the explanation of the more subtle effects and counter-effects of economic phenomena. It is these general contexts which science can add to the knowledge of a clear-minded and well-informed practical man. In all the best minds in our field we have seen established a tendency to bring to light these general contexts, to make their investigation their main concern and to treat the conclusions emerging from such an investigation as the main part of economics.

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