History of economic thought Wikipedia



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Alternative schools (19th century)

Henry George (1839–1897) is popularly recognized as the intellectual inspiration for the economic philosophy now known as Georgism. During his life, George was one of the three most famous Americans, https://xcritical.solutions/ along with Henry Ford and Thomas Edison. George’s first book, Progress and Poverty, was one of the most widely printed books in English, selling between 3 and 6 million copies by the early 1900s.

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However, it is not devoid of positive economic statements or hypotheses. Several areas of economics are truly positive and cannot be different in an Islamic or in any other framework. It is difficult to understand and study Islamic economics and the structure of the Islamic financial mechanism in isolation; unlike in ‘Western’ type economies where it is done with some degree of ease. Islamic Economics differs fundamentally from man-made laws and systems in defining economic problem.

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  • In 1568 Jean Bodin (1530–1596) of France published Reply to Malestroit, containing the first known analysis of inflation, which he claimed was caused by importation of gold and silver from South America, backing the quantity theory of money.

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  • A principle of Islam is that everything belongs to God, and wealth is held by people in trust.
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I had to do an experiment in the lab at university, but I was absent on the day of the experiment. I had to go to the lab on the following day, and I found myself the only male among a group of female students, in addition to a female teacher and a female lab technician. I was very embarrassed and felt very awkward with all those female eyes glaring at me.

Compliance with Islamic principles is the basis of all contracts between parties performing some specified act in exchange for a lawful consideration, and the most important building block for an Islamic financial and economic system. Most of the financial products, services and instruments are based on such contract. Therefore a thorough understanding is required of the Shari’ah-acceptable contracts in their multifarious and varied forms that could be used to design and develop Shari’ah-based financial products and to provide Shari’ah-compliant financial solutions. The essential problem with interest is that interest divorces the lender from any moral responsibility for the use of money lent. The return is guaranteed no matter what the changed circumstances of the borrower are.

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This concept was mirrored in the physiocrats’ economic theory, with the notion of a circular flow of income throughout the economy. Mercantilism dominated Europe from the 16th to the 18th century. Despite the localism of the Middle Ages, the waning of feudalism saw new national economic frameworks begin to strengthen. After the 15th century voyages of Christopher Columbus and other explorers opened up new opportunities for trade with the New World and Asia, newly-powerful monarchies wanted a more powerful military state to boost their status. Mercantilism was a political movement and an economic theory that advocated the use of the state’s military power to ensure that local markets and supply sources were protected, spawning protectionism. Thomas Aquinas (1225–1274) was an Italian theologian and economic writer.

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