The market mechanism is a complex and very dynamic structure, which depends on a huge number of factors: the level of inflation, the ratio of supply and demand, the activity of its participants, state regulation and, of course, the state of the economy as a whole. Moreover, it is the last element that plays one of the most important roles in the healthy development of the whole society.
The formation of the modern economy was influenced by a large number of schools and teachings. Institutional, neoclassical, Marxist, Keynesian, mercantilistic and other trends have made a huge contribution to what is now called the economy and market relations. The theories and thoughts of ancient philosophers led medieval thinkers to strive to find answers to all questions regarding the relationship between the buyer, seller and the state.
So, Moncretien - the founder of the school of mercantilism - first introduced the concept of political economy. Part of this term appeared during the life of Xenophon. It was the ancient Greek writer and politician who introduced the word "savings", which meant "laws of housekeeping." Mercantilists began to consider this concept in a more global sense - in relation not only to the family, but also in the context of the state. Therefore, Moncretien in his treatise and introduced the term "political economy". Translated literally, it means "public or state management of farms."
Gradually, this expression began to acquire more and more meaning and expand the boundaries of its meaning. And, as a result, political economy has grown into a separate science. Such scholars and thinkers of the classical school as Smith, Ricardo, Quesnay, Boisguilleberg, Turgot, Petit and others began to analyze not only the sphere of circulation, but also directly the sphere of production. This is what made it possible to consider the internal laws governing the functioning of a complex market mechanism and provided the basis for the emergence of such a new science as political economy.
Thanks to the representatives of the classical school, the beginning of the labor theory of value was laid .
This can be seen especially vividly in the writings of
David Ricardo, who first took it for the basics to analyze the differences between wages and profits, as well as between profit and rent. The theory of the classical school was aimed at expressing the interests of the bourgeois strata of the population. It was when the formation of capitalism and capitalist modes of production took place, and the completely undeveloped class struggle of the proletariat was gaining its strength. Then the representatives of this school began to violently support the separation of feudal atavism.
It was the English classical political economy that formed the basis of one of the Marxist teachings. However, not only the socialist school is based on the teachings of Ricardo and Quesnay - in the 30s of the 19th century, science changed and contradicted the theory of the classics, developed in Great Britain and France. She renounces the theory of labor value that has already become familiar and calls completely different sources of it - land, labor and capital. Scientists such as Say, Malthus and Bastia do not consider the laws of development of production, but rely solely on economic phenomena. This theory is called "vulgar political economy."