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."