My Take on Econ

  Austrian The Austrian school of economics, founded by Carl Menger, saw that the world was evolving and for the first time in history, people were making a positive impact on society and playing a “positive sum game”. Before the industrial revolution the primary economic objective was to obtain a larger share of the pie. But during the industrial revolution people saw times of economic growth without the requirement of taking a piece of the pie from a different nation. This caused a fault in mercantilism to become apparent. There was a possibility to make the pie bigger. This led to the Austrian school of economics amending the theory of mercantilism and changing it to individualism. This was a large contribution to the free market theory. The Austrian school of economics was revolutionary in terms of macroeconomic theories. They also gave insights to the laws of supply and demand, the theory of money creation, and the operation of foreign exchange rates.   Laws of...

 Classical school There have been various schools of economic thought throughout history, but I will be focussing on three over the next few posts, which I find the most fascinating: Classical , this blog; Austrian , the free-market (capitalist) school (next blog), and  Keynesian ; the school which has the most supporters in the modern world (next-to-next blog). The classical school of economics, founded by the father of economics, Adam Smith, in the late 18 th century. This was the school which revolutionised economics as its own separate study , different to philosophy. The classical school of economics made a vast number of contributions to economics. Such as, the law of marginal utility . This law states that the more of something you buy/obtain, the less useful it is to you. This can be shown by using kettles as an example. If you were to buy one kettle, it would be very useful as you can now boil water efficiently. If you were to get two kettles, the second would ...