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Historical Development of Economics

Nathan Rosenberg and L. E. Birdzell, in their book How the West Grew Rich: The Economic Transformation of the Industrial World, attempt to explain the Western world's rise to today's current wealth standards. They try to use economic history to show the relationship between past historical innovations and the rise of capitalism. Their premise is that the growth of Western wealth rests on innovations in trade, technology, and organization in combination with an accumulation of more and more capital, labor, and applied natural resources beginning during the Middle Ages (20).

The authors present their understanding of the historical development of economic concepts and institutions in a logical manner. With the evidence that they present, their conclusions are logical and appropriate. The difficulty lies in the historical evidence that the Rosenberg and Birdzell neglect to consider and their choice of claiming that the foundations of capitalism lay in the political and military institutions of the Middle Ages. As most students of economics realize, almost any outcome can be predetermined if the economist can choose the assumptions from which to work. The assumptions and historical picture that Rosenberg and Birdzell have chosen to present are not complete or accurate. Therefore, their conclusions about the development of Western capitalism and the resulting accumulation of wealth are also open to question.

Rosenberg and Birdzell's use of standard economic framework and terminology are appropriate. Their premise that during the Middle Ages new markets were opened is true. They present the standard capitalistic theory that, in order for a capitalistic economy to function, standard conditions must be met. Of primary importance is some form of ownership of property which can be controlled by individual or collective action. The rights of an enterprise to exist and of individuals to own and operate an enterprise free fro...

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Historical Development of Economics. (1969, December 31). In LotsofEssays.com. Retrieved 07:13, March 28, 2024, from https://www.lotsofessays.com/viewpaper/1692014.html