Neoclassical Thought

Neoclassical economics, named by Thorstein Veblen, is the mainstream school of thought within economics literature. Most academic research and teaching at universities throughout the world follow this dominant tradition. Although there is not much of a consensus on a clear specification of neoclassicism, methodological individualism, a utilitarian approach, (a narrowly defined) rationality, optimizing behavior, harmony among agents, marginalism, ahistoricism, abstract mathematical modeling, and axiomatic imposition of stable equilibrium could be considered the core features of neoclassical thought. Many derived outcomes and policy conclusions of neoclassical economics conform to the neoliberal and conservative agenda.

According to the classical economists, like Adam Smith, David Ricardo, and Karl Marx, the source of wealth is the social surplus produced in excess of the basic requirements for a society’s existence. The ...