Economic Romanticism

Economic romanticism is a school of thought in economic analysis which was founded by John Stuart Mill in the 1830s. This school of thought believes that economic growth does not necessarily have to be limited by the laws of economics and competition, but instead can be shaped by a structure of social relationships that allow people to create value in various ways. The economic romanticists argue that economic systems are not determined by natural laws, but rather are the outcome of intentional human design. They assert that the economy is not simply a mechanism to be managed and controlled, but rather is a living organism that must be nurtured in order to develop and sustain long-term growth and productivity.

Economic romanticism rejects the traditional dry, mechanistic approach to economics which focused almost exclusively on the production, sale, and distribution of goods and services. Instead they argued that economic development is far more complex and depends upon the creation of social relationships and values. The economic romanticists believed that the best way to foster economic growth and productivity lay in fostering a culture of creativity, experimentation, and incentivizing social values that promote transformation and innovation. This would ultimately lead to the development of more diverse and dynamic economic systems.

The economic romanticists also rejected traditional “free market” economics, arguing that a central controller who could assess and regulate the economy was necessary in order to ensure sustainable growth. They argued that the state had a responsibility in governing the economy and that the government should act as a representative of the people, protecting their interests and responding to their needs for social and economic justice.

Economic romanticism was often conflated with socialism, as many shared certain economic principles, such as support for market regulation, public ownership, and state intervention. However, their views were distinct in the amount of emphasis they placed on the importance of individual liberty, human progress and human flourishing. Economic romanticists believed that the ultimate goal of the economy should be to promote human fulfillment and increase general welfare, while socialists sought primarily to redistribute wealth.

Economic romanticism had a considerable influence on various theorists throughout the 19th and 20th centuries, particularly John Maynard Keynes who believed that government intervention was necessary to optimize economic performance and reduce poverty. It also encouraged a more holistic view of economics, which allowed for the factoring of social, environmental, and cultural aspects into economic analyses. In addition, economic romanticists sought to bring back a sense of morality and justice to economics, an idea which resonates to this day with advocates of ethical investing, social entrepreneurship, and sustainable development.

Ultimately, while economic romanticism may have had a limited amount of influence on the direction of economic development, it was nevertheless an innovative and radical idea which continues to shape the way that economics is studied and practiced today. It’s preoccupation with human centered, creative approaches to economic growth, as well as its focus on morality and the common good, continue to inspire many economic theories and initiatives which are being adopted all over the world.

Romanticism Economic School refers to a school of thought established at the beginning of the 19th century, which takes economic and social romanticism as the main viewpoint and advocates the construction of an ideal economic order. As a result of the development of the Industrial Revolution, this school of thought believed that various social issues, such as economic imbalance, cramped living conditions and low wages, have been caused by the adoption of the traditional economic structure and the implementation of the capitalist system. In order to obtain the ideal economic situation, they proposed the establishment of a new economic system that combines a socialist collective economic system with an ideological personal economic system. The representative of this school of thought is the famous French economist, saint-simon.

Saint-simon proposed the establishment of a Order of Abolishment of Poverty to realize the balanced distribution of wealth. He believes that the equilibrium of wealth can be achieved through public ownership and decentralization of the means of production, the adoption of a national wage system, the regulation of inheritance and taxes, and the redistribution of the national wealth. He believed that the social cohesion and improvement of living conditions of the lower classes could drive economic development and eventually lead to an age of progress.

To Saint-simon, social progress is a process of continuous struggle. He suggested improving the level of productivity through science and technology, educating people by expanding scientific knowledge, and reinforcing the nations external relations. He believed that the existence of a unified and safe environment, the development of science and economic power and industry, the elimination of poverty and the establishment of social classes and orders, the development of public services and the prediction of future needs are all common goals. He argued that the implementation of such policies would lead to economic prosperity and social harmony.

The main contribution of the Romanticism Economic School is to pay attention to social and humanitarian issues, promote the concept of social justice, propose to combine the capitalist market system with the socialist collective economy and further improve the system of public welfare. In todays world, the ideas of this school of thought still retain their relevance.