Abstract
In breaking with the policy regime of mercantilism, Richard Cantillon put forth a manuscript in 1730, wherein he produced the first treatise of economic theory. Key to this development was his new theory of entrepreneurship which allowed him to construct economic theories and concepts. Recent research has shown that he did not coin the term, but rather radically changed the meaning of an existing term, to its near opposite. This paper explores why he changed the meaning of the entrepreneur. The speculative answer is both theoretical and based on his life experience.
Highlights
Richard Cantillon is acknowledged as the first economic theorist and rightly deserves to be known as the father of economics
William Stanley Jevons, who is credited for rediscovering Cantillon and one of the co-founders of the Marginal Revolution called the Essai “a systematic and connected treatise, going over in a concise manner nearly the whole field of economics
Thornton (1998) provides a full description of Cantillon as the originator of economic theory. Despite all this high praise from the leaders of the field of the history of economic thought, many of his views have remained unclear until recent years
Summary
Richard Cantillon is acknowledged as the first economic theorist and rightly deserves to be known as the father of economics. Thornton (1998) provides a full description of Cantillon as the originator of economic theory Despite all this high praise from the leaders of the field of the history of economic thought, many of his views have remained unclear until recent years. In connection with the confusion over his value theory, Thornton (2009a) has shown that his term intrinsic value is synonymous with the modern term of opportunity cost and he uses it to show the opportunity cost of an apprenticeship, which is parallel to the modern textbook example of the opportunity cost of going to college He uses it to explain that the opportunity cost of property improvements is not the same as market value and he even uses it to defend the charging of high rates of interest in his famous defense of usury. He had extensive work experience as both types of entrepreneurs: market entrepreneurs and government contractors
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