German Historical School

The German Historical School, prominent in the 19th century, was an economic theory that emphasized the importance of historical context in understanding economic systems. Unlike classical economists who sought universal laws of economics, scholars like Friedrich List believed that economic policies should be based on a nation's unique history and culture. They argued that economic development varies by country and should consider specific historical circumstances, thereby advocating for tailored state interventions to promote industrialization and social welfare. This approach influenced economic thought by acknowledging the complexities of historical and social factors in shaping economies.