A blupete Essay

Economics as a Study, Part 2 to blupete's Essay
"An Essay On Economics"

Economics is the study of how human beings allocate scarce resources to produce various commodities and how those goods are distributed for consumption among the people in society. The essence of economics lies in the fact that resources are scarce, or at least limited, and that not all human needs and desires can be met. The various works on economics usually set forth the observation that it is a "science," the science of economics.7 Economics is no more of a science than philosophy. Indeed, when it comes to the question of how best to distribute our scarce resources in an "efficient and equitable way," I believe it to be a branch of philosophy (ethics); though, I hasten to add, it is not the business of an economist8 to tell us what to do but rather to show us the effect of what we do.

Economics, as a study, was first established in the 18th century by Adam Smith, who founded the so-called classical school, which included other British economists such as David Ricardo and John Stuart Mill. The classical school embraced the concept that economics concerned itself with the study of natural laws. It was John Maynard Keynes, who, in the 20th century, developed prescriptive theories; ones which were lovingly embraced by twentieth century politicians. In recent years more and more people of influence saw the immense social problems brought on by Keynes and his school; in the meantime the lonely lights of the classical school kept burning and were represented by the likes of Ludwig von Mises, Friedrich A. Hayek and Milton Friedman.

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2011