Economics 179 / Humanities 2
Classics of Economic Thought

Research Paper Allowable Subjects

The EARLY CLASSICAL SCHOOL (1780-1850)

David Ricardo, The Principles of Political Economy and Taxation (1817)

Member of Parliament, wealthy free-trader, uses meticulous logic in essays, probably the most influential political economist of his era, made numerous permanent contributions to economic theory, ranked by some on the level of Smith, Marx, and Keynes.

Thomas Robert Malthus, Principles of Political Economy (1820)

The author of the earlier Essay on Population held the first formal chair of Political Economy, at East India College, England. He was a good friend of Ricardo's and disagreed with him about nearly everything. Though a conservative, some of his ideas, such as his theory of gluts, would have considerable influence on liberal ideas generations later.

Nassau Senior, An Outline of the Science of Political Economy (1836)

The first professor of political economy at Oxford and a very conservative free-trader, opposed the labor movements of the era, argued against poor-relief, and celebrated the capitalist for his commercial piety. An exemplar of 19th century ultra-conservatism. Not so influential as Ricardo or Malthus.

Jane Marcet, Conversations on Chemistry, Intended More Especially for the Female Sex (1806), Conversations on Natural Philosophy (1819), Conversations on Vegetable Physiology (1828) and fifteen other books, including Conversations on Political Economy (1816).

The only female member of Ricardo's famous and influential Political Economy Club, whose membership was restricted to 30 members. Nearly forgotten by history, Marcet wrote books on chemistry, biology, political economy and a host of other topics. In writings of political economy, mostly explained Ricardo's ideas to a lay public (with an astonishing talent) and may have been the most widely read of the classicals and most responsible for popularizing their ideas. Has since settled into nearly complete obscurity while lesser minds are remembered.

Jean Baptiste Say, A Treatise on Political Economy (1803)

Should be classified with Adam Smith as pre-classical, and might be forgotten if it were not for Say's Law, a fundamental premise of free-trade market economics that effectively argues that market economies are inherently stable at the aggregate level - corrupted by most modern textbooks into the expression "supply creates its own demand." Napoleon disliked Say because of his free-trade ideas.

Jeremy Bentham, An Introduction to the Principles of Morals and Legislation (1780), and many other essays on utility theory.

Profoundly eccentric (his stuffed body, seated in a chair with a wax head, his actual head pickled and placed between his feet, still presides over the meeting of the Board of the University of London), Bentham was the ultimate utilitarian, and his utility theories, including the first articulation of diminishing marginal utility, still the philosophical lynchpin of microeconomics, have strong influence on economic theory even today. Though his ideas are inherently conservative, Bentham had many schemes, some practical and clever, some eccentric, for social reform.

William Cobbett, Paper Against Gold (1810) and many other essays.

Yet another eccentric and highly critical of all of the writers above. A populist and very popular writer, Cobbett wrote sometimes brilliant and sometimes ridiculous and often very funny calumnies against the classicals. He seriously thought that the best and most nutritious food was beer.

Late CLASSICAL SCHOOL (1850-1890)

John Stuart Mill, Principles of Political Economy (1848)

An eclectic progressive and liberal economist, Mill seemed at times to be fifty years ahead of his times. He wrote sweeping, passionate essays on such contemporary topics as women's rights, racism, modern educational issues, all condensed into his huge Principles along with standard treatises on issues then contemporary in economics. Many components of this book and essays published elsewhere read as though written yesterday.

Alfred Marshall, Principles of Economics (1890)

This famous book is the beginning of modern economics, at least as it is taught to undergraduates. Here you find the famous supply/demand model that is the mainstay of economic pedagogy. The prose is clear and beautiful. The book was still used at Berkeley in the 1920s. Like Mill's text, this book has a timeless quality about it. Few books have been more copied (in essence) than this.

UTOPIAN SOCIALISTS, RADICALS, REFORMERS AND CRITICS

Robert Owen, [many collected essays, readily available]

Though his essays are interesting (some read like early science fiction) the most interesting thing about this famous utopian was the story of New Lanark, his unorthodox and strangely successful utopian factory. Owen had an immense following in his lifetime and after, leading to the formation of communes around the world, including scores of them in California. Owen had a revival in the United States and was studied seriously in the 1970s (as were some of the others below).

Henri Comte de Saint-Simon [many collected essays, readily available]

A serious utopian philosopher strangely popular and influential among the royalty and wealthy of Europe (he was one of the royalty, though born poor) steeped in mysticism and the occult, though sources on Saint Simon prior to 1980 don't tell you this. He claimed to be present at the crucifixion of Christ. His wildly interesting utopian schemes had the world, through his parliament, run by artists, engineers, and scientists with a little help from businessmen.

Charles Fourier - [many collected essays, readily available]

Wildly eccentric with an immense following, Fourier appealed, like Saint-Simon, mostly to royalty and the wealthy - and to Americans!. Possibly the first to advocate "small is beautiful," a theme that was to return in the 1970s. Designed elaborately complex ideal communities, called phalanxes, many of which, in altered form, were built in the United States! Not associated with Fourier Transforms.

Pierre Joseph Proudhon - What is Property? (1840)

"Property is theft!" was his very famous answer. Proudhon's book is a classic in the tradition of utopian socialism. By many radicals today Proudhon represents all the ideas that were wrong-headed about socialism, because early in his influential career the young Karl Marx wrote a brutal and scathing calumny against Proudhon and utopian philosophy in general, criticizing Proudhons' The Philosophy of Poverty in the seminal essay, The Poverty of Philosophy.

Prince Peter Kropotkin - Spirit of Revolt (1880)

Ever want to read an elegant call to anarchy? Kropotkin is your man - and he thinks the revolution should be undertaken by scientists and engineers! The scientist who thinks science is for pleasure is no better than the drunkard who drinks gin for the same reason, he tells his legions of faithful readers.

Rosa Luxemburg - The Accumulation of Capital (1913)

This influential Marxist wrote much of her contribution from a jail cell. The undergraduate student would more likely read her Karl Marx or her many essays than the massive and brilliant Accumulation of Capital. A lot of scholars rank Luxemburg's mind above that of Lenin. Her Marxism is more passionate and not so steely-edged.

Thorstein Veblen - The Theory of the Leisure Class (1899), The Theory of Business Enterprise (1904), Engineers and the Price System (1921), The Place of Science in Modern Civilization (1919).

This is your teacher's favorite from this long list. There has never been another writer or social critic who wrote anything like Thorstein Veblen. His style, manner of exposition, mode of criticism, world view, was singular and unique. His writing is a masterpiece of exposition, irony, and brilliantly eccentric insight. though is sometimes difficult to read because his vocabulary must be the most extensive ever put to paper. He had unbridled contempt for common business practices and thought engineers should rule the world through a meritocracy.

EARLY FINANCE THEORY

John Law, Money and Trade Considered (1705)

How many men do you know who have succeeded in bringing down the governments and economies of the three most powerful nations in the world, spreading universal bankruptcy and ruination - even driving old Isaac Newton the poorhouse!? John Law did that! He had a great idea for a bank, as explained in the book above. It only had one little flaw ...

Henry Thorton, The Nature of the Paper Credit of Great Britain (around 1800)

If you are interested in the gold standard, "bullionism," and controversies surrounding the true value of money, then this influential book might be a good starting point.

SCHOOLS OF THOUGHT

The Mercantilists

British Empire, the East India Company, colonialism ... this era of British history, where Britain emerged as the world's dominant economic hegemon, is both celebrated and represented by the mercantilists - free internal trade, trade restrictions abroad. Your teacher may be the only person alive who thinks that neo-mercantilism will revive in Europe in the 21st Century. If it happens, you can say you saw it here first, though you will have to study mercantilism to know what it means.

The Physiocrats

Ah, the lush green vineyards of Bordeaux - of Napa Valley too! Was there ever a school of thought that would represent the ideals of genteel, bucolic, traditional agriculture, arguing fiercely that it must be preserved and that the so-called progress of commercial and mercantile society is vulgar and corrupt? Yes! The Physiocrats! They had a strong influence on Malthus and Adam Smith!!