Economists use several theories and methodologies linked with the application of macro-economics. Some several worldviews and theories have contributed significantly to the field of economics created by economists. Examples of the known economists that will be discussed and who have contributed to the discussion of worldview include David Ricardo, Karl Marx, and John Stuart Mill. The essay will also discuss some of their achievements, which will be explored with the pertinent macro-economic theories, hypothesis, as well as theories.
David Ricardo
Ricardo is among individuals who have been successful and achieved long-lasting fame. The economist is well known for his stance on politics and his contributions in classical economics ( Gehrke, 2015) . Ricardo is well best known for his theory of value, the theory of rent, as well as the theory of comparative costs, which is today regarded as the theory of comparative advantage ( Gehrke, 2015) . Together with other economists, Ricardo contributed to the discovery of the law of diminishing marginal returns . He coined the idea of comparative cost, also known as comparative advantage, which is the foundation for economists who believe in free trade.
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Ricardo views on comparative advantage are that nations that imports products at a lower cost are better off than when the products are produced locally ( Gehrke, 2015) . Considering the worldview presented based on the theory, if poor land's worker can manufacture a bottle of wine in five hours of labor, and bread in ten hours and a rich land's worker can produce more by producing a bottle of wine with less than five hours and bread within an hour, the it is because a rich land's worker needs fewer hours and has nothing to gain from the trade.
Karl Marx
Marx is recognized as a classical economist because of his Marxism theories. Thus, Marxism worldviews were coined by Karl Marx and are presented in the publication of his two books, which are “ The Communist Manifesto and Das Capital,” that focuses on worldview. Marx achieved fame as a revolutionary figure and not as a philosopher. His works much inspired the basis for most communist regimes, especially during the 20 th century. He coined the theory of history, which emphasizes the notion that society might rise and fall as consequently impede human power development (Wolff, 2017). Based on his views, Marx views historical processes as proceeding through the innate senses based on modes of production that are mainly characterized by class struggle and culminated into communism.
In his Pamphlet titled “ Wage Labour and Capital,” Marx posits that “if the price of a product increases considerably as a result of inadequate supply or a disproportionate increase in demand, other commodities prices might fall disproportionately “(Wolff, 2017). He argues that this could result in capital migrations towards a more profitable sector of the economy. Besides, the theory of capitalism is founded based on the labor theory of value, which entails the analysis of capitalist profit (Wolff, 2017). This also includes the extraction of surplus value from a proletariat which has been exploited.
In his response to a question “why does a quantity of a single produce exchange for a given quantity of a different commodity?” he opines that "the input in labor to manufacture a product or rather the socially necessary labor. Accordingly, the labor exerted is seen as an average level of intensity and productivity for an activity within a given economy. For this reason, being the theory of value, it means that a commodity’s value should be ascertained by the quantity of socially necessary labor time needed (Wolff, 2017). However, among the greatest challenges of understanding Marxian value is because it is a measure of value rather than a theory of value.
John Stuart Mill
As an economist, Mills strongly believed in freedom and defended it on two grounds. First, Mills asserted that the theory of utility might be maximized provided that individuals were free to make their own choices. Next, Mills suggested that freedom was necessary for the development as a whole person ( Mill, 2016) . During the mid-19 th century, Mills wrote one of the leading economic treatises. Besides, he also wrote a leading treatise of his day on logic alongside additional works on philosophy. The philosopher offered his worldview about the role of theory, as not accepting the theoretical outcomes without being critical to them in practice and given the context of a given society.
Mills believes in other factors, such as the modification of theoretical predictions by custom, which mainly distinguished him from Smith’s and Ricardo’s worldviews. For example, Mills elaborated and exemplified the classical methodology in a more explicit manner ( Mill, 2016) . He was considered as the first economist to explore the application of statistical theory. Mills' views, especially on monetary theory, were coined in the context of the times, which reflected his methodological approach ( Mill, 2016) . These explained his reactions to practical issues that were directed to theoretical inquiry instead of developing theory separately from policy questions.
Conclusion
Several theories work in the present day time that can be used to explore worldviews. Classical economists, Ricardo, Marx, and Mills, coined theories, which are presently being used in the world today. The present-day society is very materialistic of "have and have not." Hence, with the theories developed by the classical economists, such as comparative advantage should not be overlooked. The theories are used as economic tools, for the present and future generations to come.
References
Gehrke, C. (2015). Ricardo's discovery of comparative advantage revisited: a critique of Ruffin's account. The European journal of the history of economic thought , 22 (5), 791-817. Retrieved from https://www.tandfonline.com/doi/abs/10.1080/09672567.2015.1074714.
Mill, J. S. (2016). Utilitarianism. In Seven masterpieces of philosophy (pp. 337-383). Routledge.
Wolff, J. (2017). Stanford Encyclopaedia of Philosophy. Karl Max. Retrieved from https://plato.stanford.edu/entries/marx/.
