Question

How has economic thinking changed the most from the way society thought about it in the past as described in the readings?

Answer 1

Ans -

History of economic thought puts matters in perspective for some. This counts because otherwise students of economics imagine what they were taught, namely the latest doctrine, is all there is to know. So-called liberal economists judge situations as poorly as so-called conservative economists.

Economics (the study of exchanges aim at increased satisfaction) was not meant to justify a political reality or dream or to make sociologic analyses. Economists' hands are full enough analysing decisions and tracing outcomes which such decisions set in motion.

I have taught Economics at at university and a lower level. What stood out in most other teachers is that they knew only one school of thought (the latest and naturally the best to date) and notably lacked a questioning outlook.

Economics shines a very feeble light on reality. Imagine holding a candle in a vast storeroom. The candle casts large shadows and reveals no details. Better to use the candle than not, but the candle flame does not point the way to any future and reveals very little structure of an economy.

Economic Histories show budding economists how matters unfold and History of Economic Thought shows how far various economic theories are off.