Discuss the several areas that give rise to the notion that J.S. Mill was the first “modern liberal” in economic thought.
...is thoughts were progressive, not common in his times. According to him deductive models need to be used and verified with the facts, since the experimental method is not available to the social scientist. He tried to promote a society and economy that were less concerned with business of business and more concerned with self-improvement. He contributed significantly to political science, philosophy and economics. He made some developments into Ricardian framework. He advocated a continuous reexamination of the relevance of theory to fact, but failed to do that. His work contains strong strains with liberalism and laissez faire but he also advocated government intervention in the economy. In his opinion government has operational and necessary functions. He rejected socialist contamination of private property and competition. He rejected the Ricardian labor theory of value, although he did not admit that, and developed a long-run cost of production theory of value. That included both labor and capital costs. He extended the Ricardian theory of international trade to explain the terms of trade in a comparative advantage model and came close to explicitly developing the c...