The differences in the economic philosophies of different time periods can be attributed to the main ideas or mentalities prevalent during those times, as the effect of new experiences or 'impressions' on the mind. We chronologically list the main events that may have caused people to have those new experiences from which they developed new ideas.
Essence: Rise of the MerchantsThe Venetians give Europe the first taste of commerce and manufactures
Constantinople is sacked during the Fourth Crusade and treasures are brought back to Venice, which becomes a European power
Marco Polo, a Venetian, leaves for Asia
The Travels of Marco Polo is published, describing the East
Start of the Ming Dynasty
The Ming show off its power through its Treasure Fleet
Essence: Discovery and Conquest for Gold and SilverThe Portuguese want to join in the Italians' business through exploration and colonization. Soon the Spanish enter the picture with their lust for gold.
Henry the Navigator develops the caravel to be used to seek a sea route to the East
Portuguese Bartolomeu Dias reaches Cape of Good Hope
Italian Christopher Columbus reaches the Americas through Spanish support
Portuguese Vasco da Gama reaches India
Venice suffers from the Black Death while having lost its Eastern trade to the Portuguese
Spanish Armada defeated by the British
Mercantile Period (1600-1799)
Essence: Trade and the Mercantile Company for High ProfitsWith the Spanish defeated, other Europeans join in the colonization game with their own merchants through the invention of companies, paper financial products, and commodities trading.
English East India Company established
Dutch East India Company established
Bank of Amsterdam established
Royal African Company established
Bank of England established
Bank of Scotland established
South Sea Company established
Royal African Company dissolved
Richard Cantillon publishes Essai, contributing to monetary theory
Adam Smith publishes The Theory of Moral Sentiments, advocating a new system of morality.
Adam Smith publishes The Wealth of Nations, creating maxims on societal wealth
Start of the French Revolution
Pre-Capitalist Period (1800-1889)
Essence: Utility and Money for Pleasure and Industrial DevelopmentThe too-big-to-fail mercantile company model proves unsustainable. The Industrial Revolution peaks, leading to new material experiences to gratify the senses. The word 'scientist' replaces 'natural philosopher'. Big non-corporate companies are established to build steel plants and railroads.
Dutch East India Company dissolved
JB Say publishes A Treatise on Political Economy, advocating utility, the cause of producers, and removing ethicsfrom the Political Economy
South Sea Company dissolved
English East India Company dissolved
John Stuart Mill publishes Principles of Political Economy
John Stuart Mill publishes Utilitarianism corrupting the Political Economy with utility, something that Smith argued against in The Theory of Moral Sentiments
Karl Marx publishes Capital: Critique of Political Economy, arguing against an economic system originating from England and France (espoused by Mill) that would eventually evolve to become Capitalism
John D. Rockefeller establishes Standard Oil
William Stanley Jevons publishes The Theory of Political Economy, adding Calculus to the Political Economy, also based on utility
Andrew Carnegie enters the steel business
Carl Menger publishes Principles of Economics
Leon Walras publishes Elements of Pure Economics with the General Equilibrium Theory
Essence: Microeconomics and Big BusinessThe 'firm' picks up what the mercantile company has left off. Economics is formalized. By now Western moral philosophy has died, leading to world wars.
Alfred Marshall publishes Principles of Economics, turning the Political Economy into Economics. By now, moral philosophy is totally alien to Economics.
Irving Fisher publishes Mathematical Investigations in the Theory of Value and Prices
J.P. Morgan and Company established
Federal Reserve System established
World War 1
Start of Great Depression
John Maynard Keynes publishes The General Theory of Employment, Interest and Money, establishing macroeconomics. Moral philosophy is still nowhere, proven by his reference to 'animal spirits.' He merely puts economic moral obligation on governments instead of properly putting it back into the science.
World War 2
Global Capitalism (1944-)
Essence: Macroeconomics and the Rebirth of CapitalismThe US emerges from the ashes of both world wars and the Cold War to impose its own system of global capitalism. The firm evolves into huge corporations, a type of which is the too-big-to-fail bank which can crash the global economy by itself.
Bretton Woods established; The US becomes a superpower after World War II
The Cold War begins leading to sub wars such as Korean, Vietnam, and Afghan wars.
Paul Samuelson publishes Economics, standardizing Economic science
Nixon shock makes currencies pegged to nothing. Oil prices spike as petrodollars get pegged to oil instead. Inflation follows.
Repeal of Glass-Steagal. Banks awash with fiat cash, which is pegged to nothing, combine long-term and short-term cash to get employed and make even more money.
Start of Financial Crisis in the US. The combined fiat cash of banks runs out of employment and crashes.
Brexit + Trump. Stagnation caused by Economic Science, plus the lack of moral philosophy, makes the British go on their own and allows Trump (our super mercantilist) to be the most powerful person in the world.