A bit of history Economics is a social and political understanding of production, distribution and consumption of goods and the roles of prices and policies in ensuring that production and distribution are sufficient to meet consumption and to generate wealth. Before the industrial revolution, the main issues were managing the use of common land and water, and fairness in the marketplace. Thomas Aquinas (1225-1274 AD) was a philosopher but wrote some arguments about the responsibility for businesses to establish just prices. In the 17 th and 18 th Centuries, economic thought reflected the dominance of agriculture as the source of wealth, and ownership of productive land by the aristocracy. In this view of economics, the labor of workers is related to the value of things workers produce. The American Revolution and the French Revolution coincided with new economic ideas about free markets and production. Adam Smith (1723-1790) made the well-known invisible hand argument, that ...
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