|
In
the middle and late 1800's, a group of German university professors
developed the study of economics as a historical discipline,
emphasizing careful analysis of real-world circumstances rather
than abstract "principles" and "laws". Led by Gustav von
Schmoller (1838-1917), these professors denounced the abstract
theories of classical
economists and their ideas of "natural law",
believing that these ideas had very little empirical foundation
and offered no solutions to pressing social problems under laissez
faire.
These
German scholars feared Marxist
agitation and the socialist takeover of Germany, seeking instead
a middle ground between laissez faire and possible Marxist revolution.
They pressed for social welfare legislation that would relieve
the misery of the underprivileged; they wanted to preserve the
market economy, parliamentary democracy, and private ownership
of the means of production. This welfare legislation passed
in the 1880's, and has been emulated in Scandinavia, the United
States, and other countries.
|
