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by Huyyyyyyyy September 29, 2020
Get the Bizzies in da micro mug.The application of Critical Theory to neoclassical microeconomics—examining its assumptions, its methods, and its role in justifying capitalist social relations. Critical Theory of Neoclassical Microeconomics asks: Why assume rational actors? Why treat preferences as given? Why focus on equilibrium rather than power? How do these assumptions serve to naturalize markets and obscure exploitation? It doesn't reject economics but insists that neoclassical economics is one framework among many—and one that systematically ignores power, history, and inequality. Critical theory demands an economics that actually explains how economies work, not just how they're supposed to work in theory.
"Neoclassical economics assumes rational actors making optimal choices. Critical Theory of Neoclassical Microeconomics asks: rational given what information? Optimal for whom? Under what constraints? The model describes a fantasy, not reality. Critical theory insists on economics that studies power, inequality, and exploitation—not just idealized markets. Economics that ignores power is just apologetics."
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