Foundations of Classical Economic Thought

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Course Outline

  1. Classical Political Economy
  2. Economic Schools of Thought
  3. Division of Labour
  4. Value and Prices
  5. Wealth Distribution
  6. Disagreements on Value
  7. Discourse in Economics
  8. Methodological Challenges
  9. Historical Development

1. Classical Political Economy

Key Concepts & Definitions

  • Classical political economy (late 18th - early 19th century): A distinct school of economic thought that emerged during the late 18th century, focusing on the systematic study of production, exchange, and distribution of wealth, and emphasizing the autonomy of economic discourse from moral and political philosophy.

  • Emergence of economics from moral and political philosophy: The process during the 18th century whereby economic issues transitioned from being part of moral and political philosophy or theology to a separate, specialized discipline, marking the beginning of modern economics.

  • Autonomy of economic discourse: The development in the late 18th-early 19th century of economics as an independent field of study, characterized by its focus on the mechanisms of wealth creation and distribution, distinct from moral or political considerations.

Essential Points

  • Classical political economy is recognized as a distinct school that formalized economic analysis during the late 18th and early 19th centuries. It is one of three main schools, alongside Marxism and Marginalism.
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Quiz preview

1. What is classical political economy?

2. In what year was Ricardo's 'Principles of Political Economy and Taxation' published?

3. What is the primary role of the division of labour in economic organization?

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Flashcards preview

Classical political economy — emergence?

Late 18th-century school analyzing wealth, production, distribution.

Economic schools of thought — main types?

Classical, Marxism, Marginalism.

Division of Labour — role?

Increases efficiency and productivity.

Value and Prices — basis?

Labor value theory and market mechanisms.

Wealth Distribution — key agents?

Landowners, capitalists, workers.

Disagreements on Value — focus?

Labor vs utility and social relations.

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