The paper “ Population Theory, Labor Theory of Value, and Free Markets Theory” is a sage variant of the essay on macro & microeconomics. This research paper aims to compare and contrast the ancient and mercantilist ideas of Aristotle and Khaldun with their classical counterparts such as Adam Smith, David Ricardo, Thomas Malthus, and Karl Marx. The focus will be on the economic perspective such as the labor theory of value, the population theory and poverty, and the free market theory of the monopoly, supply-demand, and government intervention. IntroductionAbd al-Rahman Ibn Muhammad known as Ibn Khaldun laid down the fundamental foundation of knowledge, especially in the field of civilization.
He significantly contributed to economics and contemporary political economy, making him the father of economics alongside Adam Smith who has a lot of great work published over the years after the death of Khaldun. He did not only for-run the development of economics but also in production, supply, costs, consumption, demand, and utility which are the foundations of the modern economic theory. Before Khaldun and Plato presented the account of specialization and division of labor, the ancient Egyptians used specialization to save time and to increase production.
Aristotle proposed the definition of economics through consideration of the use of money in the analysis of exchange. Plato and Aristotle have both influenced economics considerably. Plato’ s division of labor was a fundamental concept in Adam smith’ s study “ the wealth of nations” where he greatly influenced the industrial revolution through seeking and rewarding labor specialization which became recognized and accepted by economists and political scientists. Aristotle is considered different from others as he tries to analyze some of the economic problems and phenomena of his era.
He criticized the ideas that call for the abolition of private property and the establishment of a collective system because the collective system leads to disputes contributing to the system collapse. Thus, Aristotle prefers private property since it allows for every individual to develop its ownership, increasing production.