A Discussion of Richard Cantillon

            
             Throughout the history of economic thought there have been several revolutionary thinkers that have progressed the study of economics into its current state. One such individual would be the Paris banker and London merchant of Irish background, Richard Cantillon. During his time, Cantillon deduced many important economic theories of general principle; he was more concerned with the basic principles underlying economic activity than with specific problems in economics during his era in the eighteenth century. Some of Cantillon's most notable works dealing with his major themes of study in economics that will be summarized initially in this paper deal largely with the market and prices, competition in the market and the critical role of the entrepreneur, and the overall effect of money on resulting prices and production. Although most of his works are directly in line with the neo-classical economics taught in universities today, there are also some details to be further discussed in regard to Cantillon's ideas. .
             As one of the earliest economists looking into markets, Cantillon was one of the first individuals to define market price and "real" price. In general, Cantillon concluded that the basis of the entire market rested on a hierarchy of the individuals interacting in the market that dictates the market price for goods and services. For example, in Cantillon's description of his hierarchy there are two main components: the financially independent represented by the landlords, and the financially dependent individuals represented by the inhabitants of the state. Cantillon also further breaks down the social class of dependents into the entrepreneurs and wage-earners. Entrepreneurs were loosely defined as any individual working for uncertain wages and wage-earners are simply what their name states, individuals that work for a certain known wage. Additionally to the division of individuals in a market, Cantillon viewed the economy as an overall organized network of interconnected markets operating in a fashion between the groups of individuals such that some kind of equilibrium is achieved (usually the market price).