The Ordinary Business of Life

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In early Western writings, Hesiod identified the economic problem of scarce resources, a perspective still embraced by economists today. Diocletian attempted to stabilize the declining Roman Empire through wage and price controls, a strategy that retains relevance. The late twentieth century saw physicists influencing economic thought, similar to trends in the late nineteenth century. This work offers a captivating exploration of economics, which Alfred Marshall described as "the study of mankind in the ordinary business of life." While often viewed as a modern discipline, Roger Backhouse illustrates that economic ideas have roots in antiquity, tracing contemporary thought back to ancient influences. He uncovers the origins of economic theory and the intricate interplay between economics, natural science, and philosophy. The narrative introduces a diverse array of thinkers— theologians, philosophers, politicians, lawyers, poets, and economists—who shaped ideas about money and markets. Key concepts emerged from historical contexts, from the Stoic idea of natural law to the rise of mercantilism with nation-states, and from postwar development economics to modern experimental and statistical methods enabled by technology. Vividly written, this work stands out for its integration of ancient and modern economic history, asserting that economics has been far from "the dismal science."