Mercantilism

Even though economics may seem like it is a field that hasn't been around for a long time, I can assure you that it is a fundamental principle that has allowed the development and industrialization of society. According to the Webster dictionary economics in its archaic form means "the management of household or private affairs and especially expenses." 

This is obviously a principle that has been used even in the days of Socrates, but it wasn't really formed into a field of employment until the 16th - 18th centuries when the formation of an economic theory called mercantilism was developed (Centrist Party, 2014). This theory in simplistic terms means that any nation is only as prosperous as the amount of money they have (Centrist Party, 2014). 

Source: www.coordinationproblem.org

It wasn't until the development of classical economics in 1776, and with the publication of Adam Smith's article called The Wealth of Nations that economics truly began to be viewed as a field of study (Centrist Party, 2014). Then many more theories such as the theory of laissez-faire, which was developed in the 19th century, brought about a free market, increasing the preventative measures that the government has on the free market (Centrist Party, 2014). Many other theories have been and continue to be developed as I realized when I spoke to Dr. Michael Ransom, a senior economics professor at Brigham Young University.


What he said helped me realize that economics really is developing every day, month, and year. He shared that the principles of economics remain the same, but the approaches to it change. Even in his lifetime he has seen that new theories are developed, most recently the study of human behavior from economic models has stricken the interest of many. Although many might sometimes view economics as a number crunching or money making enterprise, the intent is glowingly turning into a strive to understand the human mind.

Souce: www.cartoonstock.com

This human behavior is something that has not changed very much overtime, and yet we have learned so little about it. Economics is truly the art of dividing scarce resources to meet human needs. That sums up economics in a sentence, and it truly is a marvelous science.