Irving Fisher Contributions Essays

Economics is the study of choice and the consequences that come from said choices. Ever since the 18th century, economists have continued to argue about theories that could improve society to the greatest extent. Two great economists, Adam Smith and Karl Marx, proved to develop opposing ideologies that would soon become the foundation of the two most popular political philosophies. Even though they voiced opposing views, Smith and Marx have truly made the greatest impact on contemporary economic theory in the United States because without them, our capitalist economy would not be what it is today.

He described economics as evolutionary, constantly changing with the values, customs and laws of society. It was, in part, the uniqueness of his theories of the nature of economic order that made them so significant. Nobody else at the time seemed to notice a problem in the lavish way the wealthy displayed their wealth.

Since people always prefer money right now to the present prospect of getting the same amount of money some time in the future, the present good always commands a premium in the market over the future. This premium is the interest rate, and its height will vary according to the degree to which people prefer the present to the future, i.e., the degree of their time-preferences. (Ebling, 1996, p.82)

Alexander Hamilton is relevant in the past and present. Hamilton was the Secretary of Treasury under George Washington’s administration. During his

Though born in 1890 to a wealthy British family, Fisher did not live a life of ease. His mother died when he was a teenager, and his father lost his wealth and business as a fine art dealer less than two years later. Afflicted since birth with extremely poor eyesight and in an attempt to preserve what vision he did have, Fisher was restricted from using pen and paper for his mathematical studies. Instead of using lengthy algebraic formulas to calculate problems, Fisher developed a geometric sense for computations which allowed him to visualize solutions (Salsburg, 2011). This skill enabled Fisher to calculate mathematical answers without noting the intermediary steps, much to the chagrin of his professional contemporaries and his graduate students (Bodmer, 2003). However, this ability to jump to the answer may have also enabled Fisher to explore new statistical methods instead of devoting his time to writing out the lengthy mathematical computations thereby

He was an English political economist. His laissez-faire theory were characterized in his Iron Law of Wages that said, all tries to help make the real income of workers better by producing and making wages remained near the normal. In his paper on the Influence of a Low Price of Corn on the Profits of Stock he said what was to be known as the law of diminishing returns. He wrote about theory's of value into his own theories of action of sharing. Ne wanted to answer economic questions that everyone had so he thought host economics to a very hard state and it was a very long and hard process. He shows the system more clear and better than other people, because they needed to know it better

He is widely recognized for his key role in developing the field of human capital, the paradigm of rational choice is sociology and the application of economics modeling to key questions in political science.

Another Mankiw principle that this touches upon is that society faces a short-run tradeoff between inflation and unemployment. Policymakers can intervene with this tradeoff, by using several different tools and this is one example of that. The unemployment rate is currently at a 17 year low, but the inflation rate is similarly low. By increasing the federal funds rate, the unemployment rate will continue to remain low, while an increase in inflation can be expected. Finally, the last Mankiw principle that the article relates to is that people respond to incentives. Because of the increased federal funds rate, people may be willing to save more in the hopes that interest rates will increase, and they will be paid more. At a lower federal funds rate, people may be willing to spend more, because interest rates will not pay them as much.

Adam Smith, the father of economics, published The Wealth of Nations in 1776. Although it made little impact in its time, it conceptualised the economy in a radical new way: in terms of individual agents, acting out of self-interest. From an individualist perspective, he argued that people produced goods in order to make money, and made money in order to purchase goods they valued most. The exchange takes place in a market, where prices are set according to costs and the demand for the good. This was a self-regulating system which he described it as being controlled "as if by an invisible hand".

Many of his writings contributed to the Neoclassical Marginalist Revolution in the early 1900’s. This was the great shift from classical to neoclassical economics. He was also a big advocate of the League of Nations, because of his promotion of healthy living and world peace, and this in turn helped to eventually create the United Nations. His theories, no matter how controversial, helped shape economics into what it is

Many economist write and speak like economist. The Milton Friedman paper I feel was written for economist, while the text by Frank appears better suited for the Economic student who is just beginning the process of learning economics. Chapters #1 and 2 in the text provide the economic knowledge that students including myself will use to create well formed opinions, and possible one-liners needed today to win over the masses in visible debates like casinos.

Interest rates have a vital part in the American economic systems, whether the Feds decides to increase or decrease the interest rates the banks pass that onto the consumers and the economy. There have been many arguments why interest rates need to be increased; lower interest rates have caused Americans to have lower incomes and not be motivated to save because of the low rates (Bartlett, 2012).

In Alexander Kern’s “Emerson and Economics,” Kern draws attention to the economical aspects found in Ralph Waldo Emerson’s texts. Specifically, Kern discusses the lack of attention that Emerson’s economical notions receive. Emerson is not associated with being an economist writer, but Kern draws attention to how “he so frequently touched the subject than an understanding of his economic ideas is a prerequisite to the evaluation of his entire thought on any relative or absolute scale” (Kern 678). Kern’s theory that readers must extract the economics out of Emerson in order to comprehend his texts is extremely useful because it sheds insight on the difficult problem of viewing Emerson as an economist, yet he views Emerson as a moral

Milton Friedman’s ideas where thought to be radical, but he was the most authoritative figure in the economics field in the 20th century, (Placeholder2) and was known most for his thoughts on free enterprise, classical liberalism and limited government. (Placeholder3) His views shaped modern capitalism. (Placeholder2) He was against government intervention and favored free markets (Placeholder6).

Adam Smith is considered to be the founder of a major field called Microeconomics, which is concerned with the behavior of individual entities such as markets, firms, and households. In 1776 Smith published The Wealth of Nations, a series