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In the twentieth-century, as African states adjusted to postcolonial independence, legitimation crises and state collapse were constant threats. While authority was passed from colonial to independent rule successfully in most African states throughout the continent, some attempts at transition resulted in collapse. In Congo, for example, the state collapsed as its respective institutions (e.g. army, executives, local governments, populations) refused to recognize each other's authority and work together. It took international intervention and the installation of a strongman with foreign connivance to reconstitute the state there.
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In other African countries, state collapse was not a strictly postcolonial issue, as most states had some success transferring between regimes. Problems arose, however, when second-generation (and later) regimes began overthrowing original nationalist ones. Chad, Uganda, and Ghana are all instances of this happening – in each, a successfully established, but dysfunctional independent regime was replaced by a military regime that managed to concentrate power, but failed to effectively wield it. Legitimation crises and state collapse soon followed.
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In Eastern European countries where Stalinism was the system of domination, the legitimacy of the system was dependent on the instillment of fear among citizens and the charisma of the state leader. This was the strategy that worked for Stalin, himself, in the Soviet Union, as his brand of terror and charisma inspired a strong personality cult that placed authority and legitimacy in Stalin's hands alone. For other Eastern European states, however, Soviet communism was a foreign system that had to be imported. This proved to be a major problem, as the communist leaders in other Eastern European states lacked Stalin's charisma.
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Furthermore, communism was implemented in other East European states (e.g. Romania, Hungary, Poland) in a much shorter time frame and developed very differently from the way it did in the Soviet Union. In Hungary, for example, the communist party initially came to power via tacit consent to a coalition government.
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Over time, the party began to strategically gain more power and get rid of competition. However, the democratic means the communist parties in these states initially used to gain power lost credibility once they were seen as violent tyrannies in service of an alien power. Ultimately, populist platforms - giving farmers land, social and economic stability, and welfare benefits - gave way to brutal collectivist realities, as leaders were blamed for the very same reforms they were once praised for.
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The Tunisian Revolution began with the self-immolation of Mohamed Bouazizi on December 17, 2010, although it is also possible to consider the miner strike in the west central town of Gafsa in 2008 to be the official beginning of the movement. The Tunisian people toppled Ben Ali, who had imposed a police state. The revolution, like other Arab Spring revolutions which would soon follow, was prompted by endemic poverty, rising food prices, and chronic unemployment.
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Tunisians demanded democracy, human rights, the end of corruption, and the end of the enforcement of the 2003 Anti-Terrorism Act, which effectively criminalized their religious ideas and practices.The previous legitimacy of the Tunisian government had been based on a combination of the charisma of former president Bourguiba's secular legacy and an achievement legitimacy based on the modernization of the Tunisian state. After this legitimacy had failed and its accompanying regime had fallen, Ennahda, an Islamist party, sought to provide legitimacy through criticism of the previous regime. Tunisia initiated a top-down modernization, led by civil, urban, and secular petty bourgeoisie, contrasting with the military coups in Egypt, Syria, and Iraq, the leadership of traditional scriptural elites in Morocco and Libya, and the leadership of revolutionary armed peasantry in Algeria.Tunisians asked that a National Constituent Assembly (NCA) be formed that would be charged with writing the new constitution.
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The party of the former regime, the Constitutional Democratic Rally (RCD) was banned from running for re-election, and Ennahda received 40% of the vote in an election overseen by a higher independent authority in April 2011. With its share of 89 out of 217 total seats, Ennahda then formed a coalition in the form of a triumvirate, or troika, with the Congress for the Republic and the Forum known as Ettakatul within the NCA.Ennahda then seized considerable control by appointing 83% of public agents at all levels, and shutting down the media by physically attacking hundreds of journalists. EnEnnahda was also suspected of several assassinations, prompting the resignation of Ennahda prime minister Hamadi Jebali in April 2013.
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Ennahda also failed to produce a constitution by the agreed-upon time of a year, causing many political parties, including the major political party Nidaa Tounes, to declare the end of Ennahda electoral legitimacy.The Tunisian public and political parties then asked for a compromise legitimacy that consisted of a mandatory national dialogue between Ennahda and the other ruling members of the NCA, which began in October 2013. This effectively forced Ennahda to negotiate its own immediate departure from the government, while at the same time conceding the current failure of Islamism as a means of legitimacy. The national dialogue, which is still taking place, is seeking to establish a legitimate government, end the legislative process for the constitution and electoral code, and set up an independent body to organize elections and fix a definitive date.
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Libya's revolution is also considered part of the Arab Spring, beginning February 15, 2011, just a few months after the events in Tunisia. The revolution deposed Muammar Gaddafi, who had been the ruler of Libya for four decades and had united the country under the themes of Pan-Arabism (a form of nationalism), common geography, shared history, and Islam. The revolution was an attempt to replace these forms of legitimacy with democratic legitimacy via the National Transitional Council.Gaddafi's legitimacy waned as his regime failed to benefit those of most need in the state. Although Libya has the world's ninth-largest known oil deposits and a population of only 6.5 million, in 2010, Gallup polls showed that 29% of young Libyans were unemployed, and 93% of young Libyans described their condition as “struggling” or “suffering.” As protestors took to the streets, Gaddafi dispatched tanks, jets, and mercenaries to attack them, inciting a string of defections and so further eroding his legitimacy as a ruler.
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The actual death count of these attacks is not known, as Gaddafi's regime shut out and shut down both world and local media and communications. However, Libya's militarily weak regime was eventually overcome, and Gaddafi was killed on October 20, 2011, leading to the disintegration of the regime.Since Gaddafi's departure, tribal elders, NGOs, youth groups, town councils, and local brigades have stepped in to fill the power vacuum. There are many different tribes in Libya, not all of which have supported the regime change, making the establishment of a new form of legitimacy difficult.
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However, unlike Egypt, Libya has no entrenched officer class or judiciary to prolong or obstruct the country's transition to democracy. Since the revolution, no single group has been dominant, although several brigades, or katiba, have been able to exercise considerable strength. These katiba are “armed fighting groups ranging from 20 to 200 young men, formed along neighborhood, town or regional lines.” These brigades were central to the military strength of the revolutionary forces.
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After Gaddafi's overthrow, the powerful brigades from Misrata and Zintan raided Tripoli, the Libyan capital, “pillaged automobiles, took over ministries and encamped at key institutions like the airport and oilfields” in order to gain political power. In order to establish democratic legitimacy and sovereignty, the National Transitional Council has had to deal with these brigades, a process which has so far been mostly unsuccessful due to mistrust between the two bodies and the popularly illegitimate but regardless tangible military strength of the brigades. To firmly establish democratic legitimacy, the National Transitional Council is attempting to draft a new constitution. It has also struggled in this task, for which it is looking back to Libya's first constitution in 1951.
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Even before the 2011 revolution, former Yemeni president Ali Abdullah Saleh’s regime’s legitimacy relied on a patronage network based on the entrenched Yemeni tribal system, effectively tying Saleh’s political legitimacy to the tribes’ much more established and trusted socio-political legitimacy. Yemen is historically tribal, with tribes being responsible for defense, keeping the peace, protecting and encouraging trade and markets, and either prohibiting or facilitating travel. For many Yemenis, tribal systems are “the main or only administrative system they know.” Tribes function effectively as local governments, introducing generators and water pumps, opening schools, and providing local services. Thus, for many “the state is not representative of the Yemeni nation to which they feel they belong.”The Yemeni revolution, also part of the Arab Spring, was brought about by the loss of legitimacy by Saleh's regime.
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Yemeni youth wanted Saleh's resignation and “a more accountable and democratic system.” Though reform came slowly due to a lack of support from the international community and the poverty of the protestors – Yemen is the Arab world's poorest country – the anti-Saleh movement gained steam and high-level government officials and tribal leaders joined the opposition against Saleh. The most significant government official to join the revolutionary movement was Major General Ali Mohsin Al-Ahmar, who ordered his troops to defend antigovernment demonstrators.Saleh was deposed and his successor, Abdu Rabu Mansour Hadi, was elected in an uncontested election to serve as head of the transitional government, which includes the oppositional bloc, the Joint Meeting parties (JMP), a five-party alliance including the leading Islamist party Islah and the Yemeni Socialist Party (YSP), the Nasirist Popular Unity Party, and two small Islamist Zaydi parties.
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The National Dialogue Conference, launched in March 2013, brought together 565 delegates from these parties in order to write a constitution and deal with longstanding challenges to Yemeni governance, such as counterterrorism, development, and the Southern Separatist Movement.Although Yemen was the only country from the 2011 Arab Spring to emerge with a negotiated settlement with the current regime and a transition plan for a national dialogue, by 2013 there was “no significant redistribution of resources or hard power outside the traditional elite.” The vestiges of Saleh's regime and a lack of support from southern tribes plagued the National Dialogue Conference, which consequently finished four months later than expected, in January 2014. Further elections were indefinitely postponed, leading to speculation that Hadi and members of the parliament will keep their positions indefinitely. Due to these complications, there is currently no legitimate unifying political body in Yemen.
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The implications of an international crisis of legitimacy usually reach further than domestic crises, given that the actors have power over several different countries. International crises can threaten the stability between countries, increasing the probability for conflict.
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The European Union (E.U.) is a governing body over 28 European countries. The E.U.
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does not have complete legitimacy over the citizens of the 28 countries given that it only governs in the realm of politics and economics. Additionally, the E.U. does not operate under majority rule meaning any one country can veto laws. The E.U. suffered a legitimation crisis when it attempted to pass a constitution which failed in the 2005 French European Constitution referendum.
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In this time period, it was accepted by many political theorists that the United States was undergoing a crisis of legitimacy. Minorities in the United States began to question the legitimacy of the government because they felt they were being denied rights. The mindset was transferred into movements beginning in the Civil Rights Movement, which primarily involved African Americans and college students but eventually spread to a larger portion of the population. The United States government's reaction to the legitimation crisis of the late twentieth century shows that in a consolidated democracy, undergoing a legitimation crisis can strengthen legitimacy. In this case, the system adapted to the wants of the citizens and the United States re-established legitimacy. In the mid-1960s, the legitimacy of the United States government was challenged when citizens began to question the legality of the Vietnam War.
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In the United States 2000 presidential election, 2000 United States presidential election, Bush lost the popular vote but still won the electoral vote. Many United States citizens did not believe this was right. The legitimacy of the United States came into question after the Supreme Court Decision, Bush v. Gore. While some believe the legitimacy of the presidency came into question, others believe the legitimacy of the court was jeopardized after the decision was released In the aftermath of the decision, six hundred and seventy five law professors argued against the decision in The New York Times.
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When an actor loses legitimacy, the public no longer trusts the actor to maintain a social contract. Without the social contract, the natural rights of the public, such as life, liberty, and property, are in jeopardy. Therefore, it is usually in the interest of both the public and the actor to end the legitimation crisis. There are several ways in which to end a legitimation crisis, but there is currently no unified theory as for the best method.
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Although the actor could be replaced, as seen in many of the examples above and effectively ending the legitimation crisis, this section will focus on the conflict resolution of the crisis. In this situation, the actor that was seeking legitimacy before the crisis regains legitimacy. An actor can regain legitimacy in two ways: Re-establish the base: realigning the political actions to the widely accepted social values and norms.
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In 1956 in Montgomery, Alabama, the more than year-long Montgomery bus boycott eventually led to repeal of the local ordinance for bus segregation. In this case, by realigning the laws to fit with public opinion, the government was able to regain legitimacy.
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Coerce legitimacy: drawing on capital goods to create a "material source of power." In the Rwandan genocide in 1994, the loss of government legitimacy led to an outbreak in genocide. One of the political factions, the Hutu, killed thousands of members of the Tutsi party. The RPF had to rely on the capital goods of the international community, in the form of weapons and money, and thus were able to regain control and legitimacy in Rwanda.
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Source: The Psychology of Legitimacy Emerging: Perspectives on Ideology, Justice, and Intergroup Relations
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Serial extraction is the planned extraction of certain deciduous teeth and specific permanent teeth in an orderly sequence and predetermined pattern to guide the erupting permanent teeth into a more favorable position.
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In 1929, Kjellgren of Sweden used the term "serial extraction" for the first time. In the 1940s the technique was popularised in the United States by Hayes Nance as “planned and progressive extraction”. Nance is known as the Father of serial extraction in the United States. In 1970 Hotz in Switzerland called it active "supervision of teeth by extraction."
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There is no fixed technique to be followed while carrying out serial extractions. Careful diagnosis and continuous re-evaluation during the course of treatment is mandatory to achieve required results. However based on the usual eruption sequence of teeth, deciduous canines are extracted at the age of 8–9 years to create space for proper alignment of incisors, followed by extraction of deciduous first molars a year later so that the eruption of first premolars is accelerated and lastly extraction of the erupting first premolars to give space for the alignment of permanent canines. In some cases a modified technique is followed in which the first premolars are enucleated at the time of extraction of the deciduous first molar. This modification is frequently necessary in the mandibular arch where the canines often erupt before the first premolars.
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Extracting the primary canines only – it produces rapid self-improvement in incisor crowding and alignment intercepting the development of lingual crossbite of the lateral incisors. Extracting the first primary molars only – this approach produces the earlier eruption of first premolars but reduces the rapidity and amount of incisor alignment. This is the result of retention of primary canines. Extracting both primary canines and first molars – this is a compromise between rapid improvement in incisor alignment and the desired early eruption of first premolars.
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In some cases this sequence results in simultaneous eruption of canines and first premolar, which may cause an increased distal translation of the permanent canines and possible impaction of first premolars. Enucleation of first premolar buds – it is advocated when first premolar eruption is behind that of canines and second premolars. This allows maximal distal translation of the erupting canines.it is rarely indicated in the maxillary arch.
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In cases of class 1 malocclusion that show harmony between skeletal and muscular system Cases which present with arch length deficiency – indicated by the presence of one or more of the following: Absence of physiologic spacing Unilateral or bilateral premature loss of deciduous canines with midline shift Malpositioned or impacted lateral incisors that erupt palatally out of the arch Markedly irregular or crowded maxillary and mandibular anteriors Localized gingival recession in the mandibular anterior region Ectopic eruption of teeth Mesial migration of buccal segment Abnormal eruption pattern and sequence Mandibular anterior flaring Ankylosis of one or more teeth Cases with insufficient growth to overcome the tooth material – basal bone discrepancy. Patients with straight profile and pleasing appearance.
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Class 2 and class 3 malocclusion with skeletal abnormalities. Patients with adequate spacing in dentition Cases of anodontia/oligodontia Patients with open bite and deep bite In cases of midline diastema Class 1 malocclusion with minimal space deficiency Unerupted malformed teeth e.g. dilacerations Extensive caries or heavily filled first permanent molars Mild disproportion between arch length and tooth material that can be treated by proximal stripping
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Treatment is more physiologic Psychological trauma can be avoided by treatment at an early age Reduces the duration of fixed orthodontic treatment Better oral hygiene is possible, so reduced risk of caries Health of investing tissues (periodontium and alveolar process) is preserved, therefore reduced alveolar bone loss Less retention period is indicated More stable results are achieved Less potential iatrogenic damage Normal neuromuscular balance is achieved and maintained
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There is no single approach that can be universally applied to all patients Treatment time is prolonged as the treatment is carried out in stages spread over 2–3 years Patient has a tendency to develop tongue thrust, due to creation of extraction spaces that close gradually Extraction of posterior teeth may lead to deepening of bite There is a risk of arch length reduction because of mesial migration of the buccal segment Minor spaces may exist between canine and second premolar Axial inclination of the teeth may change at the end of serial extraction
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The diagnosis is based on a thorough case history, clinical examination of the patient, photographs, plaster study models, cephalometric radiographs, panoramic and periapical radiographs.
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Periodic growth assessment records should be made in all patients where growth is still going on i.e. made until 14 to 16 year old in girls and 18 to 19 year old in boys.
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Checking various functional movements like swallowing, respiration, speech, opening and closing and excursive movements of the mandible and careful palpation of both temporomandibular jointsis important.
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It includes assessment of tooth mass, arch form, arch length, skeletal pattern, skeletal growth potential, orofacial musculature, facial aesthetics, oral habits and hereditary assessment of parents and siblings. The most favorable morphologic factors for serial extraction include class 1 malocclusion, a favorable morphogenetic pattern – one that does not change, a flush terminal plane or a mesial step relationship of the primary second molars, minimum overjet and minimum overbite.
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Assessment of the tooth size – arch length relationship in the mixed dentition determines the presence or absence of any future or existing discrepancy, whether it is crowding or spacing. It involves the prediction of tooth size of the unerupted permanent canines and premolars. A caliper or a fine line divider is used to measure the combined width of teeth in each segment using study models. The circumferential measurement is made on the plaster cast from mesial aspect of first molar on one side to the mesial aspect of the first molar on the opposite side, and this measurement is recorded. Combined width of the permanent teeth is taken from intraoral radiographs and compared with the available arch length.
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A curve of occlusion formula is used to determine the additional space required to flatten the curve of spee. For every 1 degree of labial or lingual tipping of the mandibular incisors there is 0.8 mm of respective increase or decrease in arch length. The clinical image of the patient involves the interpretation of that individual’s own data because patients represent multiracial origins and therefore a unified norm is difficult to determine.
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Serial extraction should be limited essentially to class 1 malocclusion with an initial normal sagittal jaw relationship and normal neuromuscular balance. It is the objective of this treatment to maintain the neuromuscular balance. With the proper diagnostic assessment skilled timing and careful monitoring, programmed serial extraction procedures are capable of producing extensive amounts of permanent tooth translation. The earlier the first premolars are removed, the greater the distal eruption of the permanent canines.
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Too much uprighting of the incisors in the available space can result in too flat a face caused by the dishing in of the anterior segment. The mandibular anterior teeth must be stabilized to prevent excessive lingual tipping. A fixed mandibular arch from the left first permanent molar to the right first permanent molar may be required.
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Judicious reproximation disking of primary teeth with no tooth extraction is an occasional option. This decision depends on the careful tooth size-arch length evaluation. The amount of crowding, the arch length requirements, whether they are symmetric, and the state of health of the investing tissues are factors that continually impact the occlusal guidance program.
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Sometimes removal of second premolars or mandibular second premolars and maxillary first premolars may be preferred, depending on facial balance, anchorage requirements, size of tooth and other factors. Serial extraction is a multi-decisional, time linked process. Annual records such as panoramic radiographs, photographs and study models are essential.
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The most common unfavorable sequel of serial extraction is deepening of bite. Uprighting of incisors and early loss of posterior teeth may result in deep bite. A simple palatal bite plate may correct this problem.
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Paralleling the roots of teeth contiguous to the extraction sites is usually easy with the autonomous approximation to various degrees before mechanotherapy. Retention demands are significantly less following serial extraction. However it is better to follow a regular retention regimen for the first six months against possible relapse of rotations and to allow settling of the occlusion. A maxillary Hawley type retainer and a bonded mandibular canine to canine retainer make an efficient retention regimen.
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The military–industrial–media complex is an offshoot of the military–industrial complex. Organizations like Fairness and Accuracy in Reporting have accused the military industrial media complex of using their media resources to promote militarism, which, according to Fairness and Accuracy in Reporting's hypothesis, benefits the defense resources of the company and allows for a controlled narrative of armed conflicts. In this way, media coverage can be manipulated to show increased effectiveness of weapons systems and to avoid covering civilian casualties, or reducing the emphasis on them.
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Examples of such coverage include that of the Persian Gulf War, NATO bombing of Yugoslavia and the Iraq War. It is a common practice by defense contractors and weapons systems manufacturers to hire former military personnel as media spokespersons. In 2008, The New York Times found that approximately 75 military analysts – many with military industry ties – were being investigated by the Government Accountability Office and other federal organizations for taking part in a years-long campaign to influence them into becoming "surrogates" for the Bush administration's military policy in the media.
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During the Gulf War General Electric owned NBC while being a subcontractor for the Tomahawk cruise missile and Patriot II missile, both of which were used extensively during the Persian Gulf War. General Electric also manufactures components for the B-2 stealth bomber and B-52 bomber and the E-3 AWACS aircraft which were also used extensively during the conflict. During the first Gulf War, General Electric received $2 billion in defense contracts related to weapons which would be used in Gulf War and the 2003 invasion and subsequent occupation of Iraq by Coalition Forces. As FAIR observed, "when correspondents and paid consultants on NBC television praised the performance of U.S.
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weapons, they were extolling equipment made by GE, the corporation that pays their salaries." Directly echoing official talking points, many media officials referred to civilian casualties as "collateral damage", and like many military officials tried to avoid talking about the existence of civilian casualties altogether. Media sources also completely omitted major events.
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NBC failed to mention 2000 bombing runs in Iraq in one night during the war, going as far to say that "it's a quiet night in the middle east". Hodding Carter III said that the American government should be "paying for the press coverage it was getting right now". Chris Hedges, an American journalist who reported on the Gulf War for The New York Times, remarked that media was "as eager to be of service to the state during the war as most everyone else".
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During the NATO bombing of Yugoslavia, media coverage specifically avoided mentioning civilian casualties, even when mentioning the bombing of civilian targets such as infrastructure. Media coverage relied extensively on official NATO government and military sources for reporting, and repeatedly talked about current and future weaponry of NATO in favorable and expectant terms. Examples of weaponry include the Boeing AH-64 Apache attack helicopter, the Northrop Grumman B-2 Spirit and the Lockheed F-117 Nighthawk.
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Media-Military coordination was such that media executives met in the Pentagon with military officials to decide what to cover and how. In 2007, a company named Defense Solutions hired former four-star general and NBC analyst Barry McCaffrey to petition David Petraeus to buy 5000 armored vehicles from Defense Solutions. Subsequently, McCaffrey appeared on CNBC and praised Petraeus. The next month he encouraged congress in public testimony to purchase more armored vehicles, and criticized a plan that would see the purchase of vehicles from a competitor of Defense Solutions. Additionally, media sources failed to disclose how war industries sold weapons to Saddam Hussein during the 1980s when they covered the history of Iraq and the war crimes it had committed - often with American weapons.
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In the history of economic thought, a school of economic thought is a group of economic thinkers who share or shared a common perspective on the way economies work. While economists do not always fit into particular schools, particularly in modern times, classifying economists into schools of thought is common. Economic thought may be roughly divided into three phases: premodern (Greco-Roman, Indian, Persian, Islamic, and Imperial Chinese), early modern (mercantilist, physiocrats) and modern (beginning with Adam Smith and classical economics in the late 18th century, and Karl Marx and Friedrich Engels' Marxian economics in the mid 19th century). Systematic economic theory has been developed mainly since the beginning of what is termed the modern era.
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Currently, the great majority of economists follow an approach referred to as mainstream economics (sometimes called 'orthodox economics'). Economists generally specialize into either macroeconomics, broadly on the general scope of the economy as a whole, and microeconomics, on specific markets or actors.Within the macroeconomic mainstream in the United States, distinctions can be made between saltwater economists and the more laissez-faire ideas of freshwater economists. However, there is broad agreement on the importance of general equilibrium, the methodology related to models used for certain purposes (e.g. statistical models for forecasting, structural models for counterfactual analysis, etc.), and the importance of partial equilibrium models for analyzing specific factors important to the economy (e.g. banking).Some influential approaches of the past, such as the historical school of economics and institutional economics, have become defunct or have declined in influence, and are now considered heterodox approaches. Other longstanding heterodox schools of economic thought include Austrian economics and Marxian economics. Some more recent developments in economic thought such as feminist economics and ecological economics adapt and critique mainstream approaches with an emphasis on particular issues rather than developing as independent schools.
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Mainstream economics is distinguished in general economics from heterodox approaches and schools within economics. It begins with the premise that resources are scarce and that it is necessary to choose between competing alternatives. That is, economics deals with tradeoffs. With scarcity, choosing one alternative implies forgoing another alternative—the opportunity cost.
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The opportunity cost expresses an implicit relationship between competing alternatives. Such costs, considered as prices in a market economy, are used for analysis of economic efficiency or for predicting responses to disturbances in a market. In a planned economy comparable shadow price relations must be satisfied for the efficient use of resources, as first demonstrated by the Italian economist Enrico Barone.
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Economists believe that incentives and costs play a pervasive role in shaping decision making. An immediate example of this is the consumer theory of individual demand, which isolates how prices (as costs) and income affect quantity demanded. Modern mainstream economics has foundations in neoclassical economics, which began to develop in the late 19th century.
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Mainstream economics also acknowledges the existence of market failure and insights from Keynesian economics, most contemporaneously in the macroeconomic new neoclassical synthesis. It uses models of economic growth for analyzing long-run variables affecting national income. It employs game theory for modeling market or non-market behavior.
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Some important insights on collective behavior (for example, emergence of organizations) have been incorporated through the new institutional economics. A definition that captures much of modern economics is that of Lionel Robbins in a 1932 essay: "the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses." Scarcity means that available resources are insufficient to satisfy all wants and needs.
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Absent scarcity and alternative uses of available resources, there is no economic problem. The subject thus defined involves the study of choice, as affected by incentives and resources. Mainstream economics encompasses a wide (but not unbounded) range of views. Politically, most mainstream economists hold views ranging from laissez-faire to modern liberalism. There are also differing views on certain empirical claims within macroeconomics, such as the effectiveness of expansionary fiscal policy under certain conditions.Disputes within mainstream macroeconomics tend to be characterised by disagreement over the convincingness of individual empirical claims (such as the predictive power of a specific model) and in this respect differ from the more fundamental conflicts over methodology that characterised previous periods (like those between Monetarists and Neo-Keynesians), in which economists of differing schools would disagree on whether a given work was even a legitimate contribution to the field.
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In the late 19th century, a number of heterodox schools contended with the neoclassical school that arose following the marginal revolution. Most survive to the present day as self-consciously dissident schools, but with greatly diminished size and influence relative to mainstream economics. The most significant are Institutional economics, Marxian economics and the Austrian School. The development of Keynesian economics was a substantial challenge to the dominant neoclassical school of economics.
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Keynesian views entered the mainstream as a result of the neoclassical synthesis developed by John Hicks. The rise of Keynesianism, and its incorporation into mainstream economics, reduced the appeal of heterodox schools.
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However, advocates of a more fundamental critique of neoclassical economics formed a school of post-Keynesian economics. Heterodox approaches often embody criticisms of perceived "mainstream" approaches. For instance: feminist economics criticizes the valuation of labor and argues female labor is systemically undervalued; green economics criticizes instances of externalized and intangible ecosystems and argues for them to be brought into the tangible capital asset model as natural capital; and post-keynesian economics disagrees with the notion of the long-term neutrality of demand, arguing that there is no natural tendency for a competitive market economy to reach full employment.Other viewpoints on economic issues from outside mainstream economics include dependency theory and world systems theory in the study of international relations.
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Modern macro- and microeconomics are young sciences. But many in the past have thought on topics ranging from value to production relations. These forays into economic thought contribute to the modern understanding, ranging from ancient Greek conceptions of the role of the household and its choices to mercantilism and its emphasis on the hoarding of precious metals.
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Islamic economics is the practice of economics in accordance with Islamic law. The origins can be traced back to the Caliphate, where an early market economy and some of the earliest forms of merchant capitalism took root between the 8th–12th centuries, which some refer to as "Islamic capitalism".Islamic economics seeks to enforce Islamic regulations not only on personal issues, but to implement broader economic goals and policies of an Islamic society, based on uplifting the deprived masses. It was founded on free and unhindered circulation of wealth so as to handsomely reach even the lowest echelons of society. One distinguishing feature is the tax on wealth (in the form of both Zakat and Jizya), and bans levying taxes on all kinds of trade and transactions (Income/Sales/Excise/Import/Export duties etc.).
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Another distinguishing feature is prohibition of interest in the form of excess charged while trading in money. Its pronouncement on use of paper currency also stands out.
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Though promissory notes are recognized, they must be fully backed by reserves. Fractional-reserve banking is disallowed as a form of breach of trust. It saw innovations such as trading companies, big businesses, contracts, bills of exchange, long-distance international trade, the first forms of partnership (mufawada) such as limited partnerships (mudaraba), and the earliest forms of credit, debt, profit, loss, capital (al-mal), capital accumulation (nama al-mal), circulating capital, capital expenditure, revenue, cheques, promissory notes, trusts (see Waqf), startup companies, savings accounts, transactional accounts, pawning, loaning, exchange rates, bankers, money changers, ledgers, deposits, assignments, the double-entry bookkeeping system, lawsuits, and agency institution.This school has seen a revived interest in development and understanding since the later part of the 20th century.
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Economic policy in Europe during the late Middle Ages and early Renaissance treated economic activity as a good which was to be taxed to raise revenues for the nobility and the church. Economic exchanges were regulated by feudal rights, such as the right to collect a toll or hold a fair, as well as guild restrictions and religious restrictions on lending. Economic policy, such as it was, was designed to encourage trade through a particular area. Because of the importance of social class, sumptuary laws were enacted, regulating dress and housing, including allowable styles, materials and frequency of purchase for different classes.
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Niccolò Machiavelli in his book The Prince was one of the first authors to theorize economic policy in the form of advice. He did so by stating that princes and republics should limit their expenditures and prevent either the wealthy or the populace from despoiling the other. In this way a state would be seen as "generous" because it was not a heavy burden on its citizens.
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The Physiocrats were 18th century French economists who emphasized the importance of productive work, and particularly agriculture, to an economy's wealth. Their early support of free trade and deregulation influenced Adam Smith and the classical economists.
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Classical economics, also called classical political economy, was the original form of mainstream economics of the 18th and 19th centuries. Classical economics focuses on the tendency of markets to move to equilibrium and on objective theories of value. Neo-classical economics differs from classical economics primarily in being utilitarian in its value theory and using marginal theory as the basis of its models and equations. Marxian economics also descends from classical theory.
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Anders Chydenius (1729–1803) was the leading classical liberal of Nordic history. Chydenius, who was a Finnish priest and member of parliament, published a book called The National Gain in 1765, in which he proposes ideas of freedom of trade and industry and explores the relationship between economy and society and lays out the principles of liberalism, all of this eleven years before Adam Smith published a similar and more comprehensive book, The Wealth of Nations. According to Chydenius, democracy, equality and a respect for human rights were the only way towards progress and happiness for the whole of society.
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The American School owes its origin to the writings and economic policies of Alexander Hamilton, the first Treasury Secretary of the United States. It emphasized high tariffs on imports to help develop the fledgling American manufacturing base and to finance infrastructure projects, as well as National Banking, Public Credit, and government investment into advanced scientific and technological research and development. Friedrich List, one of the most famous proponents of the economic system, named it the National System, and was the main impetus behind the development of the German Zollverein and the economic policies of Germany under Chancellor Otto Von Bismarck beginning in 1879.
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The French Liberal School (also called the "Optimist School" or "Orthodox School") is a 19th-century school of economic thought that was centered on the Collège de France and the Institut de France. The Journal des Économistes was instrumental in promulgating the ideas of the School. The School voraciously defended free trade and laissez-faire capitalism. They were primary opponents of collectivist, interventionist and protectionist ideas. This made the French School a forerunner of the modern Austrian School.
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The historical school of economics was an approach to academic economics and to public administration that emerged in the 19th century in Germany, and held sway there until well into the 20th century. The Historical school held that history was the key source of knowledge about human actions and economic matters, since economics was culture-specific, and hence not generalizable over space and time. The School rejected the universal validity of economic theorems. They saw economics as resulting from careful empirical and historical analysis instead of from logic and mathematics.
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The School preferred historical, political, and social studies to self-referential mathematical modelling. Most members of the school were also Kathedersozialisten, i.e. concerned with social reform and improved conditions for the common man during a period of heavy industrialization. The Historical School can be divided into three tendencies: the Older, led by Wilhelm Roscher, Karl Knies, and Bruno Hildebrand; the Younger, led by Gustav von Schmoller, and also including Étienne Laspeyres, Karl Bücher, Adolph Wagner, and to some extent Lujo Brentano; the Youngest, led by Werner Sombart and including, to a very large extent, Max Weber.
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Predecessors included Friedrich List. The Historical school largely controlled appointments to Chairs of Economics in German universities, as many of the advisors of Friedrich Althoff, head of the university department in the Prussian Ministry of Education 1882–1907, had studied under members of the School. Moreover, Prussia was the intellectual powerhouse of Germany and so dominated academia, not only in central Europe, but also in the United States until about 1900, because the American economics profession was led by holders of German Ph.Ds.
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The Historical school was involved in the Methodenstreit ("strife over method") with the Austrian School, whose orientation was more theoretical and a prioristic. In English speaking countries, the Historical school is perhaps the least known and least understood approach to the study of economics, because it differs radically from the now-dominant Anglo-American analytical point of view. Yet the Historical school forms the basis—both in theory and in practice—of the social market economy, for many decades the dominant economic paradigm in most countries of continental Europe. The Historical school is also a source of Joseph Schumpeter's dynamic, change-oriented, and innovation-based economics. Although his writings could be critical of the School, Schumpeter's work on the role of innovation and entrepreneurship can be seen as a continuation of ideas originated by the Historical School, especially the work of von Schmoller and Sombart.
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Although not nearly as famous as its German counterpart, there was also an English Historical School, whose figures included William Whewell, Richard Jones, Thomas Edward Cliffe Leslie, Walter Bagehot, Thorold Rogers, Arnold Toynbee, William Cunningham, and William Ashley. It was this school that heavily critiqued the deductive approach of the classical economists, especially the writings of David Ricardo. This school revered the inductive process and called for the merging of historical fact with those of the present period.
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Georgism or geoism is an economic philosophy proposing that both individual and national economic outcomes would be improved by the utilization of economic rent resulting from control over land and natural resources through levies such as a land value tax.
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Ricardian socialism is a branch of early 19th century classical economic thought based on the theory that labor is the source of all wealth and exchange value, and rent, profit and interest represent distortions to a free market. The pre-Marxian theories of capitalist exploitation they developed are widely regarded as having been heavily influenced by the works of David Ricardo, and favoured collective ownership of the means of production.
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Marxian economics descended from the work of Karl Marx and Friedrich Engels. This school focuses on the labor theory of value and what Marx considered to be the exploitation of labour by capital. Thus, in Marxian economics, the labour theory of value is a method for measuring the exploitation of labour in a capitalist society rather than simply a theory of price.
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Anarchist economics comprises a set of theories which seek to outline modes of production and exchange not governed by coercive social institutions: Mutualists advocate for market socialism with cooperatives, mutual banking, and usufructs. Collectivist anarchists advocate for collective ownership, decentralised economic planning, and salaries based on the amount of time contributed to production. Anarcho-communists advocate for a direct transition from capitalism to libertarian communism and a gift economy with direct communal decision-making and free association. Anarcho-syndicalists advocate for the abolition of wage labour, industrial unionism, and workers' self-management through syndicates.Thinkers associated with anarchist economics include:
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Distributism is an economic philosophy that was originally formulated in the late 19th century and early 20th century by Catholic thinkers to reflect the teachings of Pope Leo XIII's encyclical Rerum Novarum and Pope Pius's XI encyclical Quadragesimo Anno. It seeks to pursue a third way between capitalism and socialism, desiring to order society according to Christian principles of justice while still preserving private property.
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Institutional economics focuses on understanding the role of the evolutionary process and the role of institutions in shaping economic behaviour. Its original focus lay in Thorstein Veblen's instinct-oriented dichotomy between technology on the one side and the "ceremonial" sphere of society on the other. Its name and core elements trace back to a 1919 American Economic Review article by Walton H. Hamilton.
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Neoclassical economics is often referred to by its critics as Orthodox Economics. The more specific definition this approach implies was captured by Lionel Robbins in a 1932 essay: "the science which studies human behavior as a relation between scarce means having alternative uses." The definition of scarcity is that available resources are insufficient to satisfy all wants and needs; if there is no scarcity and no alternative uses of available resources, then there is no economic problem.
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The Lausanne School of economics is an extension of the neoclassical school of economic thought, named after the University of Lausanne in Switzerland. The school is primarily associated with Léon Walras and Vilfredo Pareto, both of whom held successive professorships in political economy at the university, in the latter half of the 19th century. Beginning with Walras, the school is credited with playing a central role in the development of mathematical economics. For this reason, the school has also been referred to as the Mathematical School.
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A notable work of the Lausanne School is Walras' development of the general equilibrium theory as a holistic means of analysing the economy, in contrast to partial equilibrium theory, which only analyses single markets in isolation. The theory shows how a general equilibrium is reached through the interaction between demand and supply in an economy consisting of multiple markets operating simultaneously. The Lausanne School is also largely credited with the foundation of welfare economics, through which Pareto sought to measure the welfare of an economy.
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Contrary to utilitarianism, Pareto found that the welfare of an economy cannot be measured by aggregating the individual utilities of its inhabitants. Since individual utilities are subjective, their measurements may not be directly comparable. This led Pareto to conclude that if at least one person's utility increased, while nobody else was any worse off, then the welfare of the economy would increase.
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Conversely, if a majority of people experienced an increase in utility while at least one person was worse off, there could be no definitive conclusion about the welfare of the economy. These observations formed the basis of Pareto efficiency, which describes a situation or outcome in which nobody can be made better off without also making someone else worse off. Pareto efficiency is still widely used in contemporary welfare economics as well as game theory.
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Austrian economists advocate methodological individualism in interpreting economic developments, the subjective theory of value, that money is non-neutral, and emphasize the organizing power of the price mechanism (see Economic calculation debate) and a laissez faire approach to the economy.
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The Stockholm School is a school of economic thought. It refers to a loosely organized group of Swedish economists that worked together, in Stockholm, Sweden primarily in the 1930s. The Stockholm School had—like John Maynard Keynes—come to the same conclusions in macroeconomics and the theories of demand and supply. Like Keynes, they were inspired by the works of Knut Wicksell, a Swedish economist active in the early years of the twentieth century.
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Keynesian economics has developed from the work of John Maynard Keynes and focused on macroeconomics in the short-run, particularly the rigidities caused when prices are fixed. It has two successors. Post-Keynesian economics is an alternative school—one of the successors to the Keynesian tradition with a focus on macroeconomics. They concentrate on macroeconomic rigidities and adjustment processes, and research micro foundations for their models based on real-life practices rather than simple optimizing models.
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Generally associated with Cambridge, England, and the work of Joan Robinson (see Post-Keynesian economics). New-Keynesian economics is the other school associated with developments in the Keynesian fashion. These researchers tend to share with other Neoclassical economists the emphasis on models based on micro foundations and optimizing behavior, but focus more narrowly on standard Keynesian themes such as price and wage rigidity. These are usually made to be endogenous features of these models, rather than simply assumed as in older style Keynesian ones (see New-Keynesian economics).
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The Chicago School is a neoclassical school of economic thought associated with the work of the faculty at the University of Chicago, notable particularly in macroeconomics for developing monetarism as an alternative to Keynesianism and its influence on the use of rational expectations in macroeconomic modelling.
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New institutional economics is a perspective that attempts to extend economics by focusing on the social and legal norms and rules (which are institutions) that underlie economic activity and with analysis beyond earlier institutional economics and neoclassical economics. It can be seen as a broadening step to include aspects excluded in neoclassical economics. It rediscovers aspects of classical political economy.
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Notable schools or trends of thought in economics in the 20th century were as follows. These were advocated by well-defined groups of academics that became widely known: In the late 20th century, areas of study that produced change in economic thinking were: risk-based (rather than price-based models), imperfect economic actors, and treating economics as a biological science (based on evolutionary norms rather than abstract exchange). The study of risk was influential, in viewing variations in price over time as more important than actual price. This applied particularly to financial economics, where risk/return tradeoffs were the crucial decisions to be made.
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An important area of growth was the study of information and decision. Examples of this school included the work of Joseph Stiglitz. Problems of asymmetric information and moral hazard, both based around information economics, profoundly affected modern economic dilemmas like executive stock options, insurance markets, and Third-World debt relief.
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