achievement of economic science, although the position was false about the exclusive
role of agricultural production, some conclusions of the theory of physiocrats are
attracting attention today. So, Kenya has developed a "economic table" in which he
tried to create the first model of the country's economy as a whole. He analyzed how
the country's gross product (created in agriculture) is reallocated in kind in cash and in
kind between different social groups. Attempts to create similar schemes and models
were used in the future.
Prominent English economist Adam Smith (1720-1790) introduced a significant
contribution to the development of economic theory, the main work of his life "The
study of nature and causes of wealth of nations" (1776). The economic life of A. Smith
is subordinate to objective laws that do not depend on the will of people. In a market,
people are guided by their own interests, pursue their own goals, but, according to
Smith, directed, "invisible hand", they positively affect the interests of other people
and society as a whole. Under the "invisible hand", A. Smith understood the
spontaneous action of objective economic laws. Significant contribution A. Smith
made in the theory of value, in the doctrine of income, on productive and unproductive
labor, about capital and reproduction, on the economic policy of the state. Speaking
about the amount of the value, he allocated the labor costs for the production of goods,
thus, the goods are exchanged each other in proportions that correspond to the ratio of
the cost of working time spent on their manufacturing.
With the penetration of capital in the sphere of production, the views on the
subject of research also changed. The ideas of the Physiocrats were developed by
representatives of English classical political economy, its founder is William Petit
(1623-1687). His economic views were shaped by the rapid development of capitalist
relations in England. In his works "The Treatise on Taxes and Duties", "The Word is
Wise", "Political Arithmetic," he, from the standpoint of mercantilism, laid the
foundations of the labor theory of value. The well-known formula for Petit, "labor-
father and more active principle of wealth, the land is his mother," can be considered
one of the variants of his theory of the sources of value.
The most prominent economist of the era of industrial restructuring in England
was David Ricardo (1772-1823). The central place of his teaching is the theory of value
and money, wages and profits, land rent, teaching about capital and reproduction.
In the writings of the main representatives of classical political economy for the
first time was systematized the position of economic theory as a holistic single
scientific subject. Therefore, precisely after the emergence of classical political
economy, one can speak of the end of the stage of the formation of economic theory as
a science.
Over time, the capitalist system reached a rather high economic level, its
contradictions appeared and two directions of economic theory arose. The first -
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