Four Main Essences of Economics
(1) “Up with thee, idleness, go to school with the ant, and
learn the lesson of her ways! Chief or ruler she has none to
give her commands; yet in summer hours, when the harvest is agathering,
she ever lays up food for her own nourishment. And
thou, idleness, art still a-bed; wilt though never wake? What,
thou wouldst sleep a little longer, yawns a little longer; a
little longer thou must pillow head on hand? Ay, but poverty
will not wait, the day of distress will not wait, like an armed
vagabond it will fall upon thee!
This is truly a biblical statement, but this course is far
from being a religious one! Two other essential ingredients of
our subject in connection with the strength of a country and
nation derive from a forgotten genius in our field, Friedrich
List. From him we hear that:
(2) The productive power of a country is the foundation to
its greatness and importance, and nothing else. To this
quintessential truth we can add his other concept that we can
accept.
(3) Free Trade, yes, but only after development, for which
List is credited with the infant-industry argument. The free
trade theory of Adam Smith is valid, but it was not relevant to
economic reality when he wrote it, nor was it in the 19th
Century. Nor is it today! And will it ever be that is a question
which comes to light when we consider J.A. Schumpeter’s concept
of.
(4)Creative Destruction as the main process and drive-shaft
of economic development and economic growth and innovation. It
is generated by technological change and continuous innovation
brings about obsolescence. However, this process can never be
uniform on a worldwide basis as it would require a homogeneous
global village with a uniform currency and monetary system where
any financial crisis with its subsequent