The death of Political Economy: A retrospective overview of economic thought

Abstract

In following pages, the author attempts to present his thesis that the traditional social science of Political Economy is vrtually dead for long. He contends that fairly developed science had existed since 2500 BC in Mesopotamia, Egypt, China and India. The ill-fated demise of the science began in the early 17th century, and was partly accomplished in the third quarter of 19th century, that too with the rise of the Austrian School, when Carl Menger and his followers, launched their attack (against their predecessors–the Classists, Marx and the Socialists) by introducing the utility theory and the concept of marginalism, thereby developing an alternative school of economic thought. Nevertheless, the final blow was struck by Alfred Marshall, who by completely ignoring the contents of the old science, invented an entirely new conceptual web of microeconomics that made the science an ultimate victim. Tutored under Marshall, J. M. Keynes, by launching his theory of employment, interest and money, also took part in the episode. The science of political economy was dead by the end of the 1930s.