William Petty-Richard Cantillon

Father of political arithmetic

William Petty is regarded as?

Economic and social questions should be answered using numbers and data policy should be based on empirical evidence

William Petty argued that?

Down Survey of Ireland

attempted to estimate the total value of Irish land. He also estimated the population, national wealth and income (in primitive form). This foreshadows modern tools like GDP measurement and Fiscal capacity analysis. This marks an early stage of state-led economic planning

labor contributes fundamentally to economic value

What did William Petty emphasized in Labor theory of value?

Money is a tool for facilitating trade and links the money supply to economic activity

William Petty's Monetary theory contributions

Rent is a key source of income

William Petty's Rent Theory contributions?

He discussed how wages, rent, and interest are determined

William Petty's Factor pricing contribution

He linked population size and structure to national wealth and labor supply

William Petty's population economics contribution

Petty helped shift economics from philosophical speculation into a quantitative social science

William Petty's Value of land and property economics contribution

pioneer of early empirical economic measurement

Smith mentioned Petty as?

Property, Labor, and natural rights

John Locke emphasized ideas on?

certain rights exist before and independent of government

Natural law thinkers argued that?

Life, Liberty, property

This idea challenged the belief that rulers had unlimited authority over individuals and their possessions.

Locke’s Labor Theory of Property

When a person mixes their labor with nature, they create a legitimate claim to property

He argued that secure property rights encourage people to invest, improve resources, produce more, create wealth.

Property Rights Encourage Production

money should maintain a stable and reliable value.

Locke's argument about Monetary stability

Richard Cantillon

He was referred to as “true father of economics

Essay on the Nature of Trade in General

Cantillon's Major work

Interest is the reward for risk

A lender gives up the use of money and faces the possibility that the borrower may not repay

Interest depends on supply and demand for capital

When there is a high demand for borrowed funds, interest rates tend to rise

Time Preference Theory of Interest

Interest exists because people generally prefer present goods over future goods.

Productivity Theory of Interest

Interest is the return to capital because capital helps produce more output

Liquidity Preference Theory of Interest

Interest is the reward for giving up liquidity

Entrepreneurs

According to Cantillon, these people observe prices and profits, then decide what to produce. Their decisions help move resources toward areas where consumers demand more goods

supply, demand, and the scarcity of goods

Cantillon argued that prices are influenced by?

Money creation changes income distribution and relative prices and the patterns of spending

The Cantillon Effect: Money Is Not Neutral

Cantillon argued that land, labor, and production were central to economic activity

Cantillon's argument about Population, Production, and Economic Growth

He emphasized production, land, and economic activity as sources of wealth.

Cantillon's argument about Value, Land, and Wealth Creation

Austrian School of Economics

a school of economic thought that emphasizes individual choices, market processes, entrepreneurship, and the limits of government intervention