Similarities Between Economist Ideologies, Essay Example

Adam Smith’s economic ideology emphasizes the importance of the free market. Ultimately, it appears that this understanding is impacted by the economic situation that had been present during the mid-1700s in Europe. During this time period, it was clearly observable that there was a balance between the amount of types and goods available in addition to the money that would be spent for them. Through an understanding of an ability to provide products and services that people want, Smith observed that businesses could profit by incorporating this understanding into practice (Smith 2013). Kautilya implemented detailed accounting methods into his practices, requiring payments to be thoroughly recorded and made promptly (Basu 2011). This ideology is tied closely into the cultural beliefs of this ruler because scholarly works were embraced during this time period and it was believed that prompt payments were important for keeping track of funds. Ultimately, it was thought that this would ensure rapid economic development. Kautilya and Smith’s principles were similar because they attempted to show how the economy could be supported through economic practices. These ideologies were more dependent on the cultures from which these theories derived rather than the specific timing, with the exception of the impact that governing bodies placed on the implementation of these principles.

Plato’s economic principles derived from the understanding that societies will benefit if everyone shares wealth. In the modern setting, this is understood as the payment of taxes that could be used for common services. It could be said that the implementation of these ideologies are directly related to the time period and place that they were derived, as Plato was a member of a democratic society that supported the rights for all free people. This was one of the first understandings of this type generated, and it is unsurprising that these beliefs have perpetuated to today as a consequence (Zera 2008). Lord Shang enacted his political ideology to support the people as well. In particular, his measures to control growth involved and immigration restricted the number of individuals that were able to enter farming and military fields, which is similar to Adam Smith’s concept of the free market, with the exception that Lord Shang proposed that supply and demand could be controlled to stimulate the economy (Creel 1970). Financial incentives were given to individuals that agreed to cultivate new lands, which allowed farm production in new areas. Furthermore, he implemented the idea of immigration to fill needed positions, therefore encouraging economic growth (Fung 1952). These principles were also dependent upon the particular time and place, as the oligarchy system that was coming to power promoted this ideology (Hsiao 1979). Furthermore, his fight against authoritarianism required that he put methods in place to make the economy strong to demonstrate the positivity of this new government system.

Overall, the policies of all four economists are used to various extents today. It is important to understand the relationship between the government and the economy. Democratic societies tend towards use of the free market, while more authoritarian nations tend to take advantage of the market in order to be able to gain more profit. However, it is important to consider that a combination of these methods are needed in order to ensure permanent economic success. Politicians continue to draw from these basic theories in their implementation of economic theory today.

Bibliography

Basu, L. 2011, Kautilya’s Arthasastra (300 B.C.): Economic Ideas. Available from <file:///C:/Users/chery_000/Downloads/kautliyas-arthasastra-300-bc-economic-ideas.pdf>. [20 June 2015].

Creel, Hurlee G. The Origins of Statescraft in China. Chicago: University of Chicago Press, 1970.

Fung, Yu-lan. History of Chinese Philosophy. Princeton: Princeton University Press, 1952.

Hsiao, Kung chuan. A History of Chinese Political Thought, Volume I: From the beginnings to    the Six Dynasties. Princeton: Princeton University Press, 1979.

Smith, A 2013, Adam Smith: The Father Of Economics. Available from <http://www.investopedia.com/articles/economics/08/adam-smith-economics.asp>. [20 June 2015].

Zera 2008, Economic Theories. Available from <http://www.economictheories.org/2008/10/aristotle-and-plato-economic-theory.html>. [20 June 2015].