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I'm talking about classical-liberal economic theory, mostly Austrian and Chicago school.

• panick21_ 3y ago
  That is still wrong. It more correct for Chicago but its not remotely true for Austrian school. The whole point that made the Austrian school different from the Neoclassical approach used by for example Walras or Jevons was that they DID NOT think about micro economics as pure utility optimization. The point of their approach is not to claim that all individuals are self interested, rather that a dynamic market situation can lead to a good outcome whatever desire the person has. It doesn't fundamentally matter if a person buys porn for himself or if he feeds the homeless. That's of course morally different, but a difference in the underlying economics. That why there is a strong emphasis on subjective theory of value in Austrian economics. But of course simply empirically speaking most people first look out for themselves and their family and friends. Not sure why that would be controversial. And that is what Austrian economics also assumed, but its called self-interest and not selfishness.