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Economic Schools of Thought - Coggle Diagram
Economic Schools of Thought
Feudalism
Small estates owned by a
lord
The lord provided protection in exchange of labour
From the 9th to the 15th century
Mercantilism
Attempted to increase exports
The king had more power
Europe in the 1500s
Capitalism
The industrial revolution in the 1750s started this
Increased rural to urban migration
Mass production introduced
Specialisation introduced
Large technological advances
Large wealth gap created
Kings lost power
Classical Economics
was born
Adam Smith
believed in a
free market
He believed demand and supply would regulate itself
Say's law
He believed that supply created demand
Socialism
Karl Marx
He believed in
command economy
(communism)
100 years after the publication of his book, 1/3 of the world followed Karl Marx's ideas
Keynesian revolution
He believed the government should spent more than it earnt during a crisis to help lower unemployment
Monetarist
/new classical counter revolution
1980s
Economies went back to the idea of a
free market
Friedrich Hayek
and
Milton Friedman
The
circular economy
Interdependence
between us and the environment
Trying to turn the flow of resources
circular
Reuse
Recycle
Repurpose