CLASSICAL THEORIES OFECONOMIC DEVELOPMENTIn Partial Fulfillment of Requirements in Economic DevelopmentDEL ROSARIO, Geewen C.DELA ROSA, Kezia B.GALAC, Chen Chen F.GALES, Chiriath JearemGARCIA, Rose Ann A.ICASIAM, Darlene Angela G.LABONITE, Jessa Joy M.NATALIO, Kyla KhristyneNAVARRO, Krizza Ann Olivia A.GROUP 3BSA 1-DIntroduction
“The ultimate resource in economic development is people. It is people, not capital or raw materials that develop an economy.” -Peter DruckerEconomics is a social science that studies how products and servicesare created, distributed, and consumed. Macroeconomics, which studies thebehavior of the economy as a whole, and microeconomics, which studies thebehavior of particular individuals and companies, are the two main branchesof economics. Economic development is the transformation of low-income, simplenational economies into advanced industrial economies. Although it is oftenused interchangeably with the word "economic development," it is morewidely used to characterize a transition in a country's economy that involvesboth qualitative and quantitative changes. In underdeveloped countries, thetheory of economic development, how primitive and poor economies cangrow into sophisticated and relatively prosperous ones is important, and it isgenerally in this sense that economic development problems are addressed.The COVID-19 public health crisis, the pandemic's economic shock, andpublic policy, industry, and individual responses to the pandemic have allcombined to trigger the country's sharpest and fastest economic decline inhistory. The pandemic and the response to it in terms of fiscal policy haveebbed and flowed, and the economy remains fragile. Wendy Edelberg andJay Shambaugh speak about how the current crisis blends into history andwhat the long-term economic ramifications would be. Policymakers wouldneed to resolve issues such as rising corporate concentration, escalatingautomation, and drastic declines in labor force participation by some classes.The so-called pandemic has a biggest impact not only in our societybut most especially to our economy. Based on Philippine Daily Inquirer, theCovid-19 pandemic, and the lockdown shuttered thousands of businesses.The government announced that about 4.5 million Filipinos have lost theirjobs this year, with the unemployment rate at 10.4% - the highest in 15years. This number could increase, depending on how strong the impact ofthe pandemic is on the Philippine economy in the coming months. In a report, the International Labor Organization (ILO) said that theeffect of the crisis has been far-reaching, with underemployment surging asmillions of employees were ask to work reduced hours or no hours at all.Manufacturing, transportation, and storage, hotels, and food serviceoperations, as well as arts, entertainment, and recreation, are among thehigh-risk industries with the most job losses.
In connection with these scenarios, many economists developedtheories about the economic growth and development years ago. The