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1 Classical view as the base of microeconomic theory
Although it did not deal substantially with complex issues of a sophisticated modern economy, the classical theory remains useful to the present day as the basis of microeconomics, however many distinctions one cares to make or macro-theory or political economy one chooses to apply to trade them off or set their valuations in society at large.
Land has become natural capital, imitative aspects of Labor have become instructional capital, creative or inspirational aspects or "Enterprise" have become individual capital (in some analyses), and social capital has become increasingly important. The classical relationship of financial capital and infrastructural capital is still recognized as central, but there is a wider debate on means of production and various means of protection, or "property rights", to secure their reliable use.
When disputes arise regarding these fine distinctions, most economists will fall back to the three classical factors. No major theory has yet substantially altered the foundation assumptions of either "left" (Marxist) or "right" (neoclassical) theory.
2 See also
Economic terms
2.1
