Economic history
Literature review
The history of economics is a subject that has attracted the interest of many scholars, as the concept of economics is a topic that is inspired by words such as evolution and progress. Kadish, (1989) says that the history of economics has proved to be something that is more durable than the work of critics who tend to say that economics is a complex and a difficult subject to study about or understand. In most of the studies about the evolution and progression of the social sciences such as the economics, scholars relate the development of the subject in the aspect of human motives and actions that are set by human being in order to influence the development and evolution of economics (Kadish, 1989). Furthermore, to bring out a clear understanding of the economics history, Kadish, in his study found out that, economic history is not a tale of logical process, but a series of the issues that are happening with the objective of influencing the evolution and progression of the economics concept. This implies that the work of many scholars who intend to bring into light the actual meaning of the economic history as a process being influenced by the world happening and social things, depends heavily on the ideas of social evolution, economic knowledge, thoughts, and theories. On the other hand, it is vital to note that the social happenings such as industrial growth are some of the reasons that are in the frontline within the concept of economic evolution and progression (Kadish, 1989). In this context, what is being presented concerning the history of economics is something to do with factors that influence the growth and development of economics. With the economic history being the center of many criticisms, it has become the podium of study for philosophers with the goal of presenting a clear understanding of economic history; history of economic thoughts, and the influences of the social factors to the economic evolution by the end of the nineteenth century.
As many scholars have continued to come up with studies concerning the history of economics, it is clear that the development of economic concept has a clear relationship with economic theory. Lei (2007) assert that for people to explore on the development of the economic concepts, they cannot avoid the economic theory as a major factor that influences the evolution of economics. With the researcher proving that the development of economics would not have been successful without the support of the economic theory, the study outlines two reasons why the economic theory has an influence on the growth and development of the economy. Here, Lei (2007) says that without the economic theory it is difficult and challenging for one to discuss the crucial characteristics of economic development. In addition, the study also reveals that the absence of the economic theory makes it hard for the economist to understand the way the main actors perceive their economic world and the impact of the action they regularly make to the development of the economy.
Weber & Knight (2007), assert that the history of economics relies on both economic and non-economics factors. Here, it means that the progression and development of economics relies on the primitive economic life, with the economic theories being the crucial economic factors. Weber & Knight, (2007) highlight some of the economic factors that include division of labor between the gender and type of communications that the society is using as major factors that have for years influenced the progress of economics and its evolution. Correspondingly, the scholar presents factors such as governance and law as non-economic factors that have an influence on the overall development of the economic concept. In this context, it is evident that the study by Weber & Knight, (2007) is focusing on the effects of the socialistic theory of the growth and development of the economic concept. In other words, the scholar is trying to bring out the picture that entails the progression and development of the economics depend on the human life, with the society happening to be a major contributor to the economic history.
Within the concept of economic development, another vital factor that plays an important role in its evaluation is the advanced tools of economic development (Cesarano 2006). In the study, Cesarano (2006) opine that to increase the consistency and thoroughness of the economy in terms of its history, the advanced economic tools of economic theory brought substantial progress of the economy and these tools keeps undergoing reshaping process. In fact, the study discloses that the development of economics has been a topic of interest for many people, with the studies considering economic history as a field that is applicable in many areas especially by specialists with the purpose of understanding urban and labor economics (Cesarano 2006). On a different study carried out by Bruland (2003), the world ‘economy’ is another factor that has played a part in the economic history. In this context, it is obvious that when one is defining the economic history, the concept involves the world economy scope, with the term economy being used to give the conceptualization of the development, growth, and evolution of the economic or rather the economic history (Bruland 2003). With such facts, it is evident that economic history is an area that has relied on the economic theory, advanced economic tools, and the economy concept itself (Lei 2007, Cesarano 2006, and Bruland 2003).
Lei (2007) further say that within the aspect of the economic history, there are important facts that one should know concerning the economic development and its evolution. In this case, the study entails that economic history has an origin that is closely related to the various disciplines of economic. According to Bruland (2003), economy was seen as a leading agent in the past, with the concept being led by a ruler who could make decisions on how the economy should be and the way the economy need to do in different states. In the western nations such as Germany, the economic history is in different ways the source of the country’s economy Lei (2007). Throughout the study, the researcher reveals that various activities in Germany and Austria revolve their relationship around the established economy, with the actions being critical to the development and reshaping of the concept of economic. In the research Lei (2007) state that these activities are the one that are viewed as the economic theory, with the flow of the economic ideas being critical for the growth and development of the economic.
Economic History in Some Countries Globally
Persson (2010), articulate that when one wants to understand the economic history, the primary area of focus is to understand how people use the available resources to create wealth, food, and shelter. This means that in the analysis of economic concept, development of economic history depends largely on the number of resources that are available. Persson, (2010) further, outline that the resources that are available within the society can be transformed into goods and services which on the other hand changes the economy in a positive way. Over the years, both renewable and non-renewable resources have played a significant role in the development and evolution of the world economics. For example, in the European countries, the development of economics relies on the quality of firm inventories available, which are renewable resources in nature (Persson, 2010). According to Harris (1988), in America, the history of economics has great connection with the countries resources and the level of economic activities present. As such, with most of the Americans being farmers in the early 1790s, the country’s economic development was based on such economic activities. Harris (1988) tries to say that the resources that were available in America back in the 1700s, were some of the foundation of the country’s economic growth. With the availability of these resources, there was more capital accumulation in the U.S, and this did not cause any threat to the economic growth. In the similar study by Haris (1988) the development of American economics, was at some point faced with the problem of labor scarcity. However, with the development of technological advancement tools, things changed and this designed the labor services in the country, and henceforth, playing an important role towards the development of economic concept in America.
Allen (2003) asserts that in Asian countries such as Japan, the history of economics is different from the economic development of other countries across the world. As such, the economic development in Japan has something to do with the political happening back in the 1900s. The rise of Japan and reconstruction of Germany are some of the significant political changes that had a role in the development of the economy in Japan and Germany respectively (Allen, 2003). To many Western countries, the Japanese economic and political achievements are two parallel aspects that are viewed as the core factors in the explanation of the country’s economic development and growth. In addition, with Japanese making some resources acquisition in the 1800s, this had an impressive role in the development of the Japan economy. Allen (2003)posit that with Japanese acquisition activities during the Tokugawa era, this had a significant implication in the transformation of the country’s economy, which had made the economy of Japan continue to progress more in recent years.
History of Economic Thought
Economists claim that economics is a social science that was for a long time developed to examine the problems that people in the societies face (Landreth & Colander 2002). Historically, the development of economics is something that scholars claim to be dependent on the individual desire to consume goods and services that are available regardless of the fact that these goods and services are not enough for every individual in the society. With this understanding, Landreth & Colander (2002) proceed to conclude that the history of economics depends on the history of the economic thought that keeps on changing and it is heterodox in one period. This is to say that economics though as a concept that continues to change over the years has brought many shifts in the economic history, whereby the changes become integrated into the modern mainstream. In a similar study by (Sandmo, 2011), it is clear that the economics thoughts make the economist approach the history of economic from several perspectives. Samuels, Biddle, & Davis (2003) further assert that within the basic concept of economic development, the economics history has become part of the working knowledge, whereby in the history of economics development economics historians has to use their thoughts in order to come up with important ideas and methods that would make economics continue developing. This is to say that, the development and evolution of economics has a simplicity and clear begun with the thoughts and ideas of the economic historians being fundamental to the development and growth of economics in the modern world. In fact, in countries such as Russia, the progressing of the economic history is not based on the logical senses, but it is based on the thoughts and ideas that the economics historians brought out and with the ideas that the economies in the country have documented (Barnnet, 2005). This means that the development of the economic concept depends on the socialist inspired development, as the economist has to bring out the ideas, knowledge, and thoughts that are significant in propelling economics within the modern world.
The understanding of the history of economist thought is necessary, as the task gives a person the opportunity to understand and knows the modern economic concept and its development. According to Sandom (2011) previously, the understanding of the economic thought and its relationship with the economic development was something that was considered indispensable part within the aspect of economics. However, many economist states that the understanding of the economics thought and ideas make the economist clearly outline that the history of the economic subject is an issue that has to do with the thoughts and ideas that the economics historian has acquired over the years (Sandom, 2011). Moreover, the understanding of the economics thought allows the economist to makes people view the history of economics as the subject that develops as a science concept, as the understanding of the economics thoughts or ideas makes the economics give economic development scientific dates, statistical finding. This makes the development and growth of economic appear as something that has taken a systematic process (Samuels, Biddle, & Davis, 2003). With the economic history being connected to the aspect of economic thought, knowledge, and ideas, it is clearly undeniable that the development of economics has a cumulative science feature that tends to make economic history became a subject that is made up of the intellectual history. Field, (1987) say that the outlook history of the economy has an impact on the modern economics and its future. Although the economics and history tend to have a joint argument, in future the economic history will become more fashionable, whereby the history of economic ideas will depend on the history department (Field, 1987). The reason why economic tend to depend on the history department is that the concept of economics is developing to something that partly intellectual in nature. More so, Field, (1987) proves that with factors such as female participating in the labor force and increment of the real output component, the history of economic is about to take another route whereby in the future economics will be viewed as a historical social science concept that take various step to be progress and evolve in a self-explanatory manner.
According to Faccarello & Kurz, (2016), as economic development relates to the aspect of sociology, it is evident that the evaluation and development of economics are influenced directly by the sociological actions. As such, with some of the social actions such as transactions being a major factor in the economics transitional process (Faccarello & Kurz, 2016). In this case, the economic development is linked to the value of the social processes, as the social process that happens within the society are named as the economic development agents. Ref) notes recognizes monetary standard another element that relates to the social ideas as a key influence on the development of the economics. In this context, the findings on history economics were direct because the scholar reveals money to have a usual impact on the economics. Shumpeter (1954) found out that in every country the development of the economics is connected to the money rates and the way these funds is being spent. The other thing that the researcher uses in his study and links it with the history of economics is the government. Shumpeter (1954) notes that the in every nation globally, the government influences the growth of economics. For instance, the government policies and expenditure has a direct impact on the development of economics. The scholar here reveals that some of the government activities made the economic development slow down while some in the developed nations boosted the development of the economics. Shumpeter, (1954) identifies that the implication trading policies are a government doing and may either makes the process of economic growth more appealing or delays the economic history depending on the popularity of the policies within the social happening.
History of Economics and Fashion
According to Robinson (1961), fashion is a subtlest and one of the most volatile forms of luxury and in some situations, fashion may be an aspect that is difficult to see. For the economist, fashion is all to do with the expenditure and perception, with the two aspects being a key influence on the economic evaluation and development. In fact, economics believes that the way fashion is changing, economics is changing in a similar manner, as luxury and design bring out a decorative purpose that in turn is influencing the shape of the economic evaluation (Robinson, 1961). For instance, in the United States, fashion id viewed as the bright spot that is playing an important role in the formation of the creative economy of the American people (The Economic Impact of the Fashion Industry 2015). With many people in the American putting their life dependency on the fashion industry, the investment that is set within the fashion business has a vital influence on the American’s economy, with the industry aiming at making the U.S economy one of the best worldwide. With this understanding, one can see that economic history has a relation to the fashion industry, which reflects the social happenings and the way they affect the economic evaluations of a country. Viner& In Irwin, (1991) assert that fashion defines the history of economics as an area that is quite an extent regarding economic thinking and ideas. With industrialization being among the factors that made up the history of economics, fashion industry comes out as a diverse industry that provides the economic development the right tools to embrace its evaluation (The Economic Impact of the Fashion Industry, 2015). This is to say that fashion has a direct impact on the economic history, as the industry incorporates economic factors such as division of labor and expenditure and such factors are significant in the development and growth of the economic concept.
Simmel (1904) point out that fashion is a product that operates on numbers of different forms, as it is involved in revolving within one given circle and aim at emphasizing on the different form of social happenings. With this statement, Simmel tries to mean that fashion is a concept that seems to prove an exception. Therefore, as a concept that has many years tries to prove to be the exception in nature, the concept has a direct impact on the development and evolution of economics (Simmel 1904). Fashion also has an essential element of change that tends to play a significant role in the growth and development of the economic concepts. With such essential stands, Simmel (1904) highlights that fashion has the needed tendencies for the development of modern economics and the aim to influence the understanding of the economist people more about the evolution of the economic theory. In fact, the reason why Simmel say that fashion is a significant influence toward the development and growth of economics is that fashion has particular quality that makes the individuals within the society incorporate their personal lives with fashion. In addition, the fashion changes are another factor that makes the economic to change in one way or the other (Simmel 1904). The change here means the economic evolution and progression depends on the major fashion changes that are brought by fashion advancement (Simmel, 1904). With the understanding of Simmel argument taking the different perspective from several scholars, it is apparent that today, fashion is repeatedly making the economic history more clear, as it fits in the economic development circle.
From the discussion above, Simmel bring out a clear picture concerning sociology economics, as the man himself is a sociologist, his argument has a connection to the economics. With the Simmel argument about fashion bringing out the use of a phrase economic sociology by many scholars, this shows the contribution of fashion to the development of macroeconomics (Swedberg, n.d). As the fashion concept is an example of an economic sociology that deals with the economic phenomena, the concept traces the root of economic development, with the Simmel argument showing that economic sociology is relevant to the modern and future economics. Skoric, Kisjuhas, & Skoric, (n.d) identifies that fashion, as studied in the Simmel text, has a uniqueness when it comes to the history of economics. In this case, the research demonstrates that any social factor has a unique impact on the economic evolution and its development.
According to Simmel (1904), fashion possesses a unique space within the economy, and therefore, it appears as a social factor that has a quantitative filling in the society that is part of the economic history. This means that fashion is relevant to the economic transition because of the different function it has on economics within the world. In a different study by Beckert (2007), the understanding of economic sociology as shown in the Simmel argument is vital to the economist because this will give economist an opportunity to understand that economic sociology is a contributing factor to the evolution of economic change and development. In fact, in the history of economics has in various come across various problems, fashion as a sociology-economic factor makes the economic problems to be less. This implies that the integration of fashion with economic development bring out a stable economic where there is a balance between economics and sociology.
Roles of Fashion to the Economics History
With the Simmel, findings showing that fashion has for a long time gained the importance in the development of economics, researchers has come up with crucial significant that fashion has in the process of economic development. In a study done by Kisfalud, (2008) found out that fashion has become an essential element in the evolution and development of the present economic and social situations. With the study revealing that, the people’s demand in the society keeps fashion alive; it is open that fashions make up in the historical root of economics. Skov & Melchior, (2008) opine that fashion is referred by many people as a hybrid subject, because it is a concept that has the different conceptual framework, among them being a fundamental concept in the evolution of the economics. With the issue attracting a lot of commentary from various scholars, this is an indication of the roles that fashion had on other disciplines especially where it comes to their development. Kisfalud, (2008) outlines that as an economic development factor, fashion senses the shifts that are taking place in the world and come up with the better responses that are needed in a sensitive and immediate manner. These changes have critical impacts on the economics and its development since they make the economic and social situations to bring out innovative ideas that have the positive contribution to the development and growth of the economics.
Skov & Melchior, (2008) notes that fashion has a history and its history is directly connected with the aspect of economic changes. This implies that the concept of fashion is broader and narrower than many people would think. With fashion development being an opportunity for the economics of a country to gain capital, this implies that fashion has a significant role to the economic growth, as the capital, it brings in the economy is used to develop and changes the economic status (Skov & Melchior, 2008). When the customers purchase the fashion item, they contribute to the economic development through the money they pay for the fashion products. Shumpeter (1954), states that in the economic development money is like gold, with the scholar claiming that when money is plenty in the economy, this means that it will positively grow and develop. With customers buying clothing commodities, the money that they use aim at giving the economy a positive stand, as the money will support the economic development.
Critics of Economic History
In the present world, the neo-classic economics has come under critique, with many scholars claiming that the economics history is based on assumptions and other matters. In fact, research shows that the economics history is criticized for the reasons of normative bias, whereby researcher say that the economic history does not focus on explaining the actual economies, but it concentrates on describing the applications that are there in the history of economics (David 2000). In the similar study by David (2000), it is outlined that many scholars are unable to compel the reasons why economics has a clear historical, conceptual framework. In additions, research shows that the economic history is a process that relies on specific factors. David (2000) criticizes the economic history by saying that the use of the dependence path process in the economic history is loosely analogous to the evolution of economics, especially when it comes to macroeconomic and mathematics. Today the allocation that is set in the history of economics exhibit evidence of the relationship between economics and resources that are meant to contribute to the evolution and development of economics. With the economic history not showing much application of the mathematics within its evolution, this is evidence of a historical process that lacks enough support and evidence concerning its development (David, 2000). With many economic historians referring economics as a social science subject, critics say that the subject does not focus on the behavior of the individuals as the agent of economic development (Lowenberg, 1990). This implies that within the economic history, economist ignores the behavior of the people and individuals are key contributors to the economic evolution. With the scholar saying that economics encompasses a progressive process, in the economic history theories that are used to support the arguments are regressive and tend to be refutable (Lowenberg, 1990). Here the research aim at bringing out the reason that makes the progressive history of economics be amended so that it become clear to scholars that economics follows a particular route toward its development and evolution. Lowenberg, (1990) further entails that the political behavior is another issue that the economic historians tend to ignore in the explanation of the economic history. In this context, the critic says that economist historian should take into account the individual political behaviors as it can have unintended impacts on the economic history.
References
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