ECON 19 Chapter Notes - Chapter 1: Wage Labour, Factions Of Halo, Mercantilism
Document Summary
Early pre-classical period: greek philosophers and scholastic writers. Economics from an ethical/ religious point of view. In the middle ages, importance of the market, wage labor, and growth of economic activity became more important. Economics became subordinated to political objectives, to increase state power. Political objectives were to increase wealth and power. Mercantilists were no longer philosophers, but government officials and merchants. Growth of wealth and trade in a time of increasing trade, emerging cities, and state building. Economics was the management of the national household. Foreign trade: e > m (thomas mun) An important point of mercantilism is the regulation of the economy. Strengthening the economy by a positive balance of trade. Measures to keep products cheap in comparison to foreign products. Low wages = low cost of production = competitive advantage in foreign trade. Changes in patterns of production, distribution, and consumption. Charles davenant: wealth as money is an inadequate concept of wealth.
