INTRODUCTION:
Modern economics has overthrown the concepts of old medieval practices.In ancient days ‘work’ is considered as punishment whereas in 16th century as a means to glorify God. The period (1600-1850) can be viewed as a class struggle between landlords and new bourgeois for control of state. Classical economics was one of the elements in this battle. Classical economics refer to a period stretching from introduction of Adam smith’s book ‘The wealth of Nations’ to introduction of Stuart mill’s ‘principles of political economy’.Classical economics is the beginning of modern theo-ries of development.It retained its rationalism from mercantilism but in the interests of new class.
CONTEXT:
Mercantilism is the economic theory which precedes …show more content…
10) Utility of a commodity is not the one to fix the price but the amount of labour involved in pro-ducing that particular commodity.
11) Division of labour is the reason for economic growth of nations.Division of labor increase labor productivity make efficient labour.
12) Free market and competition where individual is free from any state control would naturally lead to the share of benefit and to the progress of all the classes.
13) The expansion of factories, market and with capitalists accumulating capital would increase more workers and increase in wages.
14) Regulation should come from competition. Individuals liberty should be safeguarded.
In 18th century Britain was changing in the aspects of agriculture and technology. Social changes were happening where landlords divided their lands among the tenant farmers who pays the rent to them. This new class gave employment to farm labourers to produce food and raw materials. Three classes were formed in the society such as landlords who get the rents, small producers who take the profits and the wage labourers who get wages. The labourers are deprived of control over the production process and they make their living based on their working capacity. The peculiar point here is an hour of risk taking of capitalists is made worth thousands of time more than the heavy hard toiling of labourers. The land owners who do not involve in any farm work are getting their rent and leading a riotous life and the bourgeois are getting huge profits and flourishing by expand-ing their production, whereas the labourers are left with no option other than earning daily wage which just let them have
Modern economics has overthrown the concepts of old medieval practices.In ancient days ‘work’ is considered as punishment whereas in 16th century as a means to glorify God. The period (1600-1850) can be viewed as a class struggle between landlords and new bourgeois for control of state. Classical economics was one of the elements in this battle. Classical economics refer to a period stretching from introduction of Adam smith’s book ‘The wealth of Nations’ to introduction of Stuart mill’s ‘principles of political economy’.Classical economics is the beginning of modern theo-ries of development.It retained its rationalism from mercantilism but in the interests of new class.
CONTEXT:
Mercantilism is the economic theory which precedes …show more content…
10) Utility of a commodity is not the one to fix the price but the amount of labour involved in pro-ducing that particular commodity.
11) Division of labour is the reason for economic growth of nations.Division of labor increase labor productivity make efficient labour.
12) Free market and competition where individual is free from any state control would naturally lead to the share of benefit and to the progress of all the classes.
13) The expansion of factories, market and with capitalists accumulating capital would increase more workers and increase in wages.
14) Regulation should come from competition. Individuals liberty should be safeguarded.
In 18th century Britain was changing in the aspects of agriculture and technology. Social changes were happening where landlords divided their lands among the tenant farmers who pays the rent to them. This new class gave employment to farm labourers to produce food and raw materials. Three classes were formed in the society such as landlords who get the rents, small producers who take the profits and the wage labourers who get wages. The labourers are deprived of control over the production process and they make their living based on their working capacity. The peculiar point here is an hour of risk taking of capitalists is made worth thousands of time more than the heavy hard toiling of labourers. The land owners who do not involve in any farm work are getting their rent and leading a riotous life and the bourgeois are getting huge profits and flourishing by expand-ing their production, whereas the labourers are left with no option other than earning daily wage which just let them have